Unfortunately, scams based on national disasters are common during times of crisis when people are vulnerable and in search of assistance. Whether it’s in the aftermath of a hurricane, major flood, wildfire, or other disaster, scammers seek to exploit the situation to defraud victims.

Here are some tips to help you protect yourself from charity and disaster scams:

Recognize the Red Flags

Unsolicited Contact

Be wary of unsolicited phone calls, emails or other contacts asking for donations. Scammers may be using the opportunity of a disaster to pretend to be charitable organizations.

Spoofed Caller ID

Scammers may use technology to make it appear they are calling from a legitimate organization. You should contact the organization directly using a trusted source of contact information in order to verify identity.

Pressure Tactics

Fraudsters often try to create a sense of urgency, pressuring you to donate or make decisions immediately, so you do not have time to think critically about the request. Legitimate charities will not rush you into making a donation.

Verify Before You Donate

Be sure to research a charity for a cause you are interested in before donating. Many states require charities to register with a state agency. Verify the charity’s registration status through your state’s resources. When donating to charities, use credit cards or checks, as these methods are easier to track. Be wary of requests for wire transfers or gift cards, which are common forms of payment in scams.

Types of Scams

The following are common types of scams that have appeared after major disasters. Learning to recognize them can help you be vigilant against fraud.

Clean-Up and Debris Removal Scams

Be cautious of individuals promising immediate clean-up and debris removal services. Some scammers may quote exorbitant prices, demand upfront payments and disappear. Others may simply lack the necessary skills to do a good job. Always verify credentials before paying for services. Ask for IDs, licenses and proof of insurance. Seek references when available. If they’re legitimate operators, somebody has likely benefited from their service and can vouch for them.

Personal Information Scams

Scammers may pose as government officials from FEMA or other agencies and request sensitive details such as credit card and bank account numbers or Social Security numbers. Legitimate government agencies like FEMA do not charge an application fee. If someone offers to help you qualify for FEMA funds in exchange for money, it’s likely a scam.

Disaster-Related Charity Scams

Scammers may set up fraudulent charities to exploit disaster situations and the public's willingness to help. Before donating to any charity, do your homework. Research the charity and verify its legitimacy.

Rental Listing Scams

Some con artists prey on disaster victims who are displaced from their homes and need temporary or long-term accommodations. Avoid wiring money or providing security deposits or rent before meeting with renters or companies. Obtain a lease, review it closely, and consult with legal counsel before signing if necessary. Watch out for unscrupulous landlords who seek to use the stress of a disaster to gouge potential tenants.

It can be difficult to make clear-minded decisions during the stress of a disaster. To help avoid becoming a scam victim, follow these best practices and be aware and skeptical of potential scams. For more fraud and scam resources, visit Cadence Bank’s Fraud and Security Center.

Sources:
https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-frauds-and-scams/charity-and-disaster-fraud
https://www.fcc.gov/consumers/guides/after-storms-watch-out-scams
https://consumer.ftc.gov/articles/how-avoid-scams-after-weather-emergencies-and-natural-disasters
https://www.fema.gov/press-release/20240221/beware-fraud-and-scams#
https://www.fema.gov/about/offices/security/disaster-fraud

This article is provided as a free service to you and is for general informational purposes only. Cadence Bank makes no representations or warranties as to the accuracy, completeness or timeliness of the content in the article. The article is not intended to provide legal, accounting or tax advice and should not be relied upon for such purposes.