Beware of Fraudulent Schemes Related to Disaster Help
Release Date: April 6, 2006
Release Number: 1624-023
» More Information on Texas Extreme Wildfire Threat
AUSTIN, Texas -- State and federal officials are asking everyone to be alert for fraud in the wake of the Texas wildfires.
The U. S. Department of Homeland Security's Federal Emergency Management Agency (FEMA) and the Texas Governor's Division of Emergency Management (GDEM) urge people who encounter a fraudulent scam to report it to their local law enforcement, the Attorney General's Office of Consumer Protection at 800-337-3928 or FEMA's Disaster Fraud Hotline at 866-720-5721 .
Officials warn Texans to beware of criminal activity involving disaster assistance programs.
"I'm sad to say that even in times of disaster, there are some people who try to take advantage of and exploit the help that is out there for people who really need it," said Deputy Federal Coordinating Officer Dick Harmon, who heads FEMA's wildfires recovery operation in Texas. "We intend to turn over every report of fraudulent activity to law enforcement for investigation and prosecution."
State Coordinating Officer Duke Mazurek of the Texas Governor's Division of Emergency Management said, "The State of Texas will not tolerate anyone trying to cheat or defraud our citizens. This kind of activity will be sought out and stopped."
Individuals affected by the disaster should be aware of the following:
- No legitimate FEMA or other government inspector, telephone operator or staff will ever ask a disaster assistance registrant for money, their bank account PIN number, or other compensation for completing an individual's application. However, if applicants want their assistance funds to be electronically deposited into their bank account, they will have to provide a bank account and bank routing number to the operator taking their call. They should provide this information only when they place a call to the FEMA tele-registration number.
- The only ways to apply for disaster assistance from FEMA are by calling the toll-free tele-registration number at 800-621-FEMA (3362) or by logging onto www.fema.gov . If someone gives you a form they claim is for FEMA, report it immediately to FEMA's Disaster Fraud Hotline listed above.
- Anyone attempting to receive disaster assistance when their home or apartment was not damaged during the disaster will be aggressively pursued and prosecuted by appropriate policing agencies. Anyone suspecting fraud may make an anonymous report by calling the Fraud Hotline.
- When beginning repairs to damaged structures, never sign a blank contract. Get any agreement in writing, and make sure the contract covers all the work to be accomplished, all other costs, a payment schedule and who is responsible for obtaining necessary permits. Check with local governmental zoning boards for code regulations.
- Don't give anyone an advance payment in cash, and make sure your payment schedule is clearly spelled out in your contract.
- Be suspicious of anyone who offers to inflate the amount of your disaster damage assessment.
- Be leery of offers to help you fill out loan or grant forms for a fee. If you need help filling out your U. S. Small Business Administration (SBA) loan package, call the SBA toll-free number at 800-659-2955. For FEMA disaster assistance, call the FEMA Helpline at 800-621-3362 (TTY 800-462-7585).
- FEMA does not endorse individual loan companies or contractors, so be wary of any business that claims it has governmental support or endorsement.
- It is always wise to read carefully any document, application, voucher or other paper related to disaster assistance. If you have any questions about the legitimacy of a document claiming to come from FEMA, call the Helpline.
FEMA manages federal response and recovery efforts following any national incident. FEMA also initiates mitigation activities, works with state and local emergency managers, and manages the National Flood Insurance Program. FEMA became part of the U.S. Department of Homeland Security on March 1, 2003.
Last Modified: Friday, 19-May-2006 09:39:11