After a natural disaster strikes your community, emergency assistance and charity groups will arrive in your town to help. But, unfortunately, so do the scammers.
Following the devastation of Hurricane Helene in the Southeast, federal and state agencies are warning residents to be careful of whom you trust to repair your home and which businesses you employ.
“After a disaster, criminals and scammers may try to take advantage of you when you’re looking for help,” Jayce Genco, the Federal Emergency Management Agency’s deputy press secretary, told HuffPost. “FEMA urges Hurricane Helene survivors to be on alert for con artists and criminals trying to obtain money or steal personal information through fraud, scams or identity theft.”
Here are the most common Hurricane Helene-related scams you need to watch out for right now:
The Unlicensed Contractor Scam
Doug Templeton, Pinellas County’s consumer protection chief investigator in Florida, said the biggest concern his office is experiencing right now is from unlicensed contractors. These bad actors go door to door and say they live in the neighborhood and may tempt storm victims with offers of immediate fixes ― if you pay cash upfront.
“They’re going to offer a discount if you sign an agreement on the spot or [will] request a large down payment,” Templeton said. “But, unfortunately, a lot of times they may do minimal or no work and never return.”
Be wary of any stranger showing up at your home and offering unsolicited home repair services. They may use sales tactics like, “Hey, I was just down the street. I have some leftover materials from helping your neighbor out. They said I should come down here. Maybe I can help you, too,” Templeton warned.
Templeton suggested getting at least three estimates from different contractors before you make any major decision: “Don’t sign a contract on the spot. That’s what the point of an estimate is for.” For Floridians, Templeton also recommends the disaster contractors network, which connects consumers and residents with contractors who have been vetted by the state’s business regulator.
Good contractors will be able to show proof of licensure, liability insurance and worker’s compensation if employees get injured, Templeton said.
“With the level of work that’s going to be done, if there are major renovations, structural changes that have to occur to the home, then you absolutely need to have a licensed contractor in there,” Templeton said. Properly licensed contractors will know how to pull permits and carry out home inspections, while bad ones can lead to shoddy workmanship and bigger headaches down the road.
If a project is valued at $40,000 or more in North Carolina, for example, your general contractor must have a license issued by the state. You can search your state’s database to confirm your general contractor has a verified license. Here are the license databases for Florida, Georgia, South Carolina and North Carolina.
The Price-Gouging Scam
Price gouging, or charging absurdly high amounts of money for essential goods, such as gas, generators or baby food, is typically banned in states when an official state of emergency is declared afte a natural disaster.
Be wary of prices for generators, gas or other essential items that are marked unconscionably high. North Carolina’s attorney general said it has received more than 100 reports about price gouging related to fuel, groceries, hotel rooms and other emergency needs.
Templeton said his consumer protection division looks for “gross disparities” in prices for essential commodities after a natural disaster. “We want to show that there’s a case of water that went from being $7 and now this business is charging $40. That’s obviously going to be a large jump,” he said.
If you do believe you are a victim of price gouging or you see a business that is doing this, document the suspected price gouging and report it to your state attorney general to investigate. It helps to have photos or receipts showing the time, place and address of the business, along with the price you paid and prices of that same item at nearby businesses, according to South Carolina’s attorney general.
In North Carolina, you can file an online complaint form here or call the state attorney general’s office at 1-877-5-NO-SCAM. In South Carolina, you can either file an online complaint here, email [email protected] or call 803-737-3953. In Georgia, the attorney general said the state’s ban on price gouging amid emergencies will remain in effect until Wednesday. You can report price gouging to the state’s consumer protection division by filing an online complaint here or calling 1-800-869-1123. In Florida, you can call the state’s price gouging hotline at 1-866-966-7226 or file a complaint online here.
The FEMA Impersonator Scam
Just because someone is wearing a shirt from FEMA or the Army Corps of Engineers doesn’t mean that they actually work for them. No legitimate FEMA, federal or state worker should ask for or accept money, so be wary of anyone who offers to speed up your application process for a price.
“FEMA doesn’t charge for home inspections, disaster assistance or help filling out applications,” Genco said.
Federal disaster workers should be carrying official identification that they can show you. If you have any doubt that a person is actually a FEMA worker, call the main FEMA helpline at 800-621-3362 to report the incident.
It is a red flag if a government official asks for your banking information, too. Government disaster officials do not need it for you to receive help.
“When a FEMA inspector calls to discuss your damaged home, they will require verification of your identity but will already have your registration number,” Genco explained.
Do not trust any random text that claims “your federal government check in the amount of $2,800 has been disbursed” and directs you to a link. FEMA will only reach out by mail or a phone call if you have already applied for assistance, so be suspicious of any unsolicited contact.
If you do learn that an application for FEMA assistance has been started in your name, you might be the victim of identity theft and should report it to authorities.
The Fake Charity Scam
Donating cash is one of the best ways to help communities in need after a natural disaster, but you need to make sure your money is going to the right place.
“A lot of people are struggling right now. [Scammers] are going to use this to their advantage,” said Amy Nofziger, director of victim support for the AARP Fraud Watch Network. “When the first [fundraiser] comes across our social media feed, we need to be careful. We need to go to the legitimate sources.”
On Friday, the office of North Carolina’s attorney general issued a consumer alert against fake crowdfunding campaigns related to Hurricane Helene: “Scammers can sometimes use [GoFundMe] to trick you into donating to something that does not exist,” the alert says.
To avoid getting duped, research any business or person who is fundraising, even if their group name sounds legitimate.
“Never judge a charity based solely on their name. A lot of times, [scammers] use names that are similar to well-known charities,” Templeton warned.
Give.org and Charity Navigator keep track of which groups are reputable with trustworthiness ratings. Some states also run their own rating systems. Florida has a Check-A-Charity service, for example, where businesses report their finances and residents can see how much of each dollar donated goes to its charity programs versus how much goes to a third-party solicitor.
Ultimately, during a crisis, there are many generous people who will show up to lend a helping hand to neighbors. These genuine helpers will hopefully outnumber the bad actors, but you should always double-check their verifications and their business prices to be sure.
