Potential scams in the wake of hurricanes, natural disasters and how to avoid them
RICHMOND, Va. (WRIC) -- As the nation braces for another major hurricane, several agencies are warning consumers about potential scams, price gouging and collusive schemes appearing in the wake of natural disasters. According to the United States Department of Justice, scammers quickly exploit weather emergencies and take advantage of people trying to recover or donate to disaster victims. Weather emergencies provide disruptions to the supply chain, which the department said can provide opportunities for wrongdoers to engage in collusive schemes that inflate prices charged to customers who are under extreme stress and are unable to fight back against the prices. According to the department, the Justice Department, Federal Trade Commission and the Consumer Financial Protection Bureau want to warn consumers about the following types of potential natural disaster schemes: Fraudulent charities soliciting donations for disaster victims that often imitate the names of charities linked to the disaster. Scammers impersonating government officials, offering disaster relief in exchange for personal information or money. Scammers promoting non-existent businesses or investment opportunities related to disaster recovery, such as rebuilding or flood-proofing. Price gouging for essential goods and services needed by disaster victims. Businesses using supply chain disruptions as a cover for collusion to overcharge customers. To avoid scams and fraud while recovering from a hurricane or another natural disaster, the department reminds people of the following: Only scammers will insist that you pay for services by wire transfer, gift card, payment app, cryptocurrency or in cash. Avoid anyone who promises they can help you qualify for relief for a fee, as that is a scam. Never sign your insurance check over to someone else. Be sure to research contractors and get estimates from more than one before signing a contract for work. Get a written contract for repairs and read it carefully before signing it. To report a complaint of fraud, complete the Disaster Complaint Form, or call the National Center for Disaster Fraud at 866-720-5721, which is a hotline staffed 24 hours a day, seven days a week.
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RICHMOND, Va. (WRIC) -- As the nation braces for another major hurricane, several agencies are warning consumers about potential scams, price gouging and collusive schemes appearing in the wake of natural disasters.
According to the United States Department of Justice, scammers quickly exploit weather emergencies and take advantage of people trying to recover or donate to disaster victims.
Weather emergencies provide disruptions to the supply chain, which the department said can provide opportunities for wrongdoers to engage in collusive schemes that inflate prices charged to customers who are under extreme stress and are unable to fight back against the prices.
According to the department, the Justice Department, Federal Trade Commission and the Consumer Financial Protection Bureau want to warn consumers about the following types of potential natural disaster schemes:
- Fraudulent charities soliciting donations for disaster victims that often imitate the names of charities linked to the disaster.
- Scammers impersonating government officials, offering disaster relief in exchange for personal information or money.
- Scammers promoting non-existent businesses or investment opportunities related to disaster recovery, such as rebuilding or flood-proofing.
- Price gouging for essential goods and services needed by disaster victims.
- Businesses using supply chain disruptions as a cover for collusion to overcharge customers.
To avoid scams and fraud while recovering from a hurricane or another natural disaster, the department reminds people of the following:
- Only scammers will insist that you pay for services by wire transfer, gift card, payment app, cryptocurrency or in cash.
- Avoid anyone who promises they can help you qualify for relief for a fee, as that is a scam.
- Never sign your insurance check over to someone else.
- Be sure to research contractors and get estimates from more than one before signing a contract for work.
- Get a written contract for repairs and read it carefully before signing it.
To report a complaint of fraud, complete the Disaster Complaint Form, or call the National Center for Disaster Fraud at 866-720-5721, which is a hotline staffed 24 hours a day, seven days a week.
