Many dependable organizations, government programs and businesses offer help after a natural disaster. Unfortunately, dishonest vendors and scammers will also be there, ready to take advantage of you when you’re vulnerable. If you’ve had the bad luck of facing a natural disaster, or you’re a concerned citizen who wants to help disaster victims, beware of con artists and criminals. Scams and cons that prey on disaster victims and those who want to help the victims can come in many forms, including:
- Home repair frauds
- Identity theft
- Fake government representatives
- Fake charities
Protect yourself from scams by staying alert and doing your homework. It’s important to know that who you’re dealing with is legitimate and not just a fraudster trying to take advantage during a time of confusion and high emotions. Be prepared by knowing how scammers operate and what to do to protect yourself.
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Home repair frauds
Home repair and cleanup frauds are especially common after natural disasters. Be careful who you hire to work on your home.
- Be wary of door-to-door soliciting.
- Don't fall for a one-day-only special or discounts for hiring on the spot.
- Check references.
- Check out the business with the Better Business Bureau.
- Confirm that the business or individual is licensed in your state by contacting your local or state building department.
- Get second opinions about the scope of work that needs to be done.
Be careful, too, with how you pay for repairs and cleanup.
- Always get written estimates.
- Never pay in cash.
- Don't sign over your insurance settlement check.
- Pay only by credit card or personal check.
- Don't pay in full up front.
Identity theft
Monitor
your credit report for signs of identity theft — especially if you've lost important papers.
Many people lose important papers and documents after a natural disaster. These documents often contain important personal information that identity thieves can use to make purchases and open new accounts in your name. For your protection, be sure to:
- Report lost credit cards immediately
- Report lost checks and bank cards
- Shred, secure or dispose of any documents or items that contain personal information.
- Get a copy of your credit report a few weeks after the disaster and review it for signs of fraud.
All Americans are eligible for a free credit report once a year from each of the three major credit bureaus: Equifax, Experian and TransUnion. However, AnnualCreditReport.com doesn’t work from overseas for security reasons, so if you’re stationed or deployed outside the United States, you can print an official form to order your report by mail.
Fake government representatives
Some con artists pose as representatives of the Federal Emergency Management Agency or other government agencies. If you get a phone call or visit from someone claiming to represent a particular federal agency, always call the agency to confirm that the person is legitimate. Some of these scammers may try to collect a processing fee for an emergency loan or other assistance.
Getting help after a disaster
The following organizations provide disaster victims with information and resources to get the help they need:
- Ready.gov provides extensive information on natural disasters and information on what to do immediately after a disaster.
- DisasterAssistance.gov helps you search for disaster relief by the type of assistance you need or by federal agency.
- The American Red Cross provides disaster recovery information and specific tips for coping with different kinds of disasters, including fires, hurricanes, floods and winter storms.
Helping others while avoiding scams
Many kind, generous individuals want to help after a natural disaster. But beware of con artists who pretend to solicit money to help disaster victims. Here are some ways to make sure your financial gift goes to a reputable organization:
- Carefully check the charity's name because many fake charities have names that are almost identical to well-known, reputable charities.
- Consult a nonprofit watchdog group to make sure your charity is reliable. Charity Navigator and the Better Business Bureau's Wise Giving Alliance evaluate charities in a number of areas.
- Call the charity registration department in your state attorney general's office to make sure a charity is legally registered as a nonprofit.
- Ask for information on the charity, and read up on the organization before donating.
- Consider donating to organizations that you are already know and that are well established.
- Be wary of out-of-state organizations, especially if their only address is a post office box.
- Ask the solicitor to clearly describe how your donation will be used. Look for this information on the organization's website.
- Ask for a copy of the organization's annual report. Legitimate charities will gladly send you written information.
- Never make cash donations, and always make your checks payable to the organization, not to the individual soliciting.
- Don't give your credit card number to a solicitor.
- Be careful when responding to charitable solicitations that come through the mail. Read all solicitations carefully, including the fine print.
- Be alert to potential email scams. Email solicitations might link you to a fake website that looks like an established charity's site, but exists solely to collect credit card and personal information.
Check out the Military OneSource podcast, Giving Without Getting Taken, to learn more about charity scams.
Reporting problems
If you have an unresolved issue with a company about a financial product or service, especially during this vulnerable time, file a complaint with the Consumer Financial Protection Bureau’s Consumer Complaint Database. Your complaint will get the attention it needs, and you may also help the bureau to:
- Supervise companies
- Enforce federal consumer protection laws
- Write better rules
Learn more about protecting your financial health. Schedule a free financial counseling session with Military OneSource by calling 800-342-9647.