In times of disaster, communities pull together to help one another, however, disasters can also present the opportunity for scammers to take advantage of people. Disaster fraud is a very real occurrence during a crisis. The Consumer Financial Protection Bureau (CFPB) has some tips to help you avoid disaster fraud, including:
- Contact your insurance company as soon as possible to start the claims process;
- Stay away from adjustors who charge big upfront fees, refer you to contractors, ask you to make a false or inflated claim, or ask you a suspicious amount of personal information;
- Get bids from several local, established contractors; and
- Never pay in cash.
The last thing you should have to worry about after a disaster is a financial disaster due to fraud. For more information on how to avoid scams while on the road to recovery, check out this article from CFPB.
Survivors should also keep in mind that state and federal workers never ask for or accept money, and always carry identification badges with a photograph. There is no fee required to apply for or to get disaster assistance from FEMA, the U.S. Small Business Administration (SBA), or the state. Additionally, no state or federal government disaster assistance agency will call to ask for your financial account information; unless you place a call to the agency yourself, you should not provide personal information over the phone – it can lead to identity theft.