Three Familiar Scams After A Disaster
Release Date: October 9, 2008
Release Number: 1791-104
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AUSTIN, Texas -- The destruction caused by hurricane Ike leaves many residents, small business owners and people who are out of work vulnerable to fraudulent offers of help. As a result, Texans continue to be the target of three familiar scams. The U.S. Department of Homeland Security's Federal Emergency Management Agency (FEMA) and the Texas Governor's Division of Emergency Management (TXGDEM) say fraud remains a problem in the affected areas.
It's important to be aware of three scams that always seem to pop up after a disaster. But Texans should know the following examples by no means exhaust the possibilities.
1.) Phony contract workers: After life sustaining items like food, water and shelter are met, repair contracting is at the top of the list of most needed services. Anyone whose home or apartment was damaged needs the services of a contractor and is eager to find one. If the home's damage is plainly visible, a phony contractor may see it as an opportunity to make fast money. The "contractor" knocks on the door offering to make repairs. This is an offer homeowners should refuse. Legitimate contractors will have more work then they could handle after a disaster. What are some of the ways to avoid this scam?
- Use licensed local contractors, ask for references and check them before entering into a contract.
- Ask for a written estimate from at least 3 contractors, including labor and materials. Read the fine print.
- Make sure the contractor carries general liability insurance and workers' compensation. If he or she is not insured, you may be liable for accidents that occur on your property.
2.) Fake offers of help getting state or federal aid: A Texas woman claiming to help residents get federal assistance was caught collecting personal information, including Social Security numbers. Some scam artists walk around carrying a clipboard with official looking forms; this is no proof they are with a state, federal or voluntary agency serving those affected by the disaster. What should you do if you suspect an offer for help is fake?
- Don't reveal personal information when you are unsure of the person or organization. FEMA-contracted inspectors call to schedule an appointment before visiting a home, always wear a photo ID and know the applicant's name and registration number.
- Contact FEMA. Call 1-800-621-FEMA (3362) or TTY 1-800-462-7585 for people with speech or hearing needs. FEMA is the place to get state or federal help and to find out what other organizations offer disaster assistance.
- Never pay a fee for help. Remember FEMA never charges for disaster assistance.
3.) Bogus Hurricane Ike solicitations: It can be hard to resist online pleas for a donation to help Hurricane Ike survivors. Many who may not have suffered damage themselves are often eager to help fellow Texans in need. A solicitation may arrive by email, someone may call or you may get a knock at the door; the person asks for a donation to a hurricane relief fund. What can you do to be sure the request for funds is legitimate?
- Research fully the charitable organization they claim to represent by getting an exact name and phone number.
- Call the charity directly and confirm the person asking for funds is an employee or volunteer.
- Ask how the funds will be used.
- If you decide to give, write a check in the name of the charity and get a receipt.
Report suspicious or fraudulent activity you know about to the Consumer Complaint Hotline at (800) 252-8011 or file a complaint online at www.texasattorneygeneral.gov
FEMA coordinates the federal government's role in preparing for, preventing, mitigating the effects of, responding to, and recovering from all domestic disasters, whether natural or man-made, including acts of terror.
Last Modified: Thursday, 09-Oct-2008 15:43:36