The Justice Department, the Federal Trade Commission, and the Consumer Financial Protection Bureau are warning Americans about scams and fraud aimed at those recovering from hurricanes and other natural disasters.
Weather emergencies disrupt the supply chain, providing opportunities for scammers to take advantage of people trying to recover or donate to disaster victims.
Natural disaster scams include: businesses overcharging customers; price gouging for essential goods and services; promoting non-existent businesses or investment opportunities related to disaster recovery; fraudulent charities soliciting donations for disaster victims; and scammers impersonating government officials, claiming offering disaster relief in exchange for personal information or money.
“The Antitrust Division and its law enforcement partners will act quickly to root out anticompetitive behavior and use every tool available to hold wrongdoers accountable,” Manish Kumar, Justice Department Antitrust Division deputy assistant attorney general, said.
Americans are warned that anyone who promises to help disaster victims qualify for relief by paying a fee is a scammer. Americans also are warned to carefully read written contracts for repairs before signing; to research contractors and get estimates from more than one before signing a contract; and to never sign your insurance check over to someone else.
Only scammers will insist services be paid by cryptocurrency, gift card, payment app, wire transfer, or in cash.