When natural disasters hit, fraudsters are usually not far behind. Sadly, victims rebuilding their homes and lives are seen as easy targets by scam artists. To avoid this, keep your personal information secure and be wary of anyone who approaches you offering quick access to relief funds or rebuilding help.
Amidst the chaos of preparing for tornadoes, hurricanes, wildfires, floods, or other kinds of emergencies, there's another threat that often lurks unnoticed: scams targeting vulnerable individuals during times of crisis.
Scammers have been known to take advantage of disaster situations, often preying on those seeking help to rebuild their homes and lives.
After wildfires struck the Hawaiian island of Maui in 2023, real estate scams quickly followed. In the aftermath of Hurricane Ian last year, Florida officials immediately warned residents about contractor fraud, debris removal scams, and other similar threats.
If you live in an area prone to natural disasters like these, stay one step ahead by knowing how con artists strike in times of trouble.
Common disaster scams
The Federal Trade Commission reports that there are four types of scams that are commonly seen after a natural disaster or weather emergency.
Imposter scams: To gain your trust, fraudsters pose as government officials, inspectors, utility workers, or even Federal Emergency Management Agency (FEMA) staff. They’ll tell you that they need access to your personal information, like your Social Security or bank account number, so they can begin the required work on your home. Or they even may tell you that you need to pay a fee to file an application with FEMA and obtain relief funds.
Construction scams: Individuals posing as contractors may canvas recovery areas offering quick repairs or debris removal services. They may demand cash up front or try to get you to sign over your insurance check. They may also claim they don’t need to be licensed or try to get you to sign a blank contract.
Rental listing scams: Since many people may need temporary housing after a disaster hits, scammers sometimes advertise bogus rentals, requesting security deposits or wire transfers that they then steal.
Charity scams: In the aftermath of a weather emergency or natural disaster, there may be fraudulent charities or individuals pretending to represent legitimate organizations that approach you to solicit donations.
How to avoid disaster recovery scams
The best way to avoid these natural disaster scams is knowing how to recognize them and avoid taking the bait.
Don’t give out your sensitive personal information. Never share your sensitive details with a stranger without first requesting their identification and verifying they are legitimate (whether it’s a government worker, contractor, broker, management company and/or landlord).
Be wary of anyone pressuring you to make decisions quickly or provide payment upfront, without allowing you to verify their credentials or get further information.
Avoid paying with cash, wire transfers, cryptocurrency, or gift cards. Payment in these forms is harder to trace, and it will be difficult or impossible to get your money back if you encounter a thief.
Watch out for people offering to expedite FEMA applications and insurance claims or promising unusually high settlements. Contact FEMA or your insurance company directly to verify any offers or applications.
What to do before a storm hits
There are a few things you can do to stay ahead of the scams that may appear after a major weather event in your area. While it may be challenging to add these measures to your already long list of preparations, it’s the best way to protect your identity and financial future.
Review your insurance policy. Check your policy to make sure you’re aware of what types of damages are covered and who to contact if you need to file a claim.
Research contractors in your area. You can secure recommendations, read reviews, and review potential contractors' credentials early, then keep a list of people you feel secure using, if needed.
Store backups of critical information. In addition to having physical copies of your personal information (stored in a secure location like an anchored safe), you may also want to have digital backups, like on an external hard drive or cloud storage like iCloud or Dropbox.
Stay in the know. Visit FEMA.gov and download the FEMA Mobile App to get up-to-date alerts and relief information before and after disaster hits.
Resources for financial help after a disaster
FEMA disaster relief: FEMA operates a Disaster Housing Program to help people who have been forced out of their homes by disasters. This includes Disaster Home Repair Assistance, which gives grants to people for minor but necessary disaster-related repairs. Call the FEMA Disaster Helpline at 1-800-621-FEMA or visit Disasterassitance.gov.
SBA loans: The U.S. Small Business Administration makes low-interest loans of up to $200,000 to homeowners to repair or replace their primary residence.
HUD disaster recovery: The U.S. Department of Housing and Urban Development (HUD) provides disaster recovery funds. To apply, contact your state or local community development office.
What to do if you fall victim to a disaster scam
Sometimes even with careful preparation, you may fall victim to fraud. If you think you’ve been hit by a scam or if you’ve spotted one in your area, report it to the FTC at ReportFraud.ftc.gov. Your report could help the FTC stop scams and help save others.
As an Allstate Identity Protection member, you can call our customer care team at any time using the number on your account dashboard. We’re available 24/7 to provide support and help guide you through the next steps toward reclaiming your identity.
Disaster preparedness is not just about physical readiness, but also about protecting yourself from financial and emotional harm. By understanding your risks, securing your assets, and staying vigilant, you can weather the storm with greater resilience.
