Disaster Scam Alert!

The Federal Trade Commission (FTC), the Department of Justice (DOJ) and the Consumer Financial Protection Bureau (CFPB) issued a joint statement alerting consumers to scams and price gouging in the wake of the current and past hurricanes and other natural disasters. 

The notice reminds consumers that scammers are quick to exploit weather emergencies and take advantage of people impacted by the disaster or wishing to donate to disaster victims. Possible types of natural disaster scams include:

·    Fraudulent charities soliciting donations for disaster victims often imitate the names of legitimate charities linked to the disaster.

·    Scammers impersonating government officials, offering disaster relief in exchange for personal information or money.

·    Scammers promoting non-existent businesses or investment opportunities related to disaster recovery, such as rebuilding or flood-proofing.

·    Price gouging for essential goods and services needed by disaster victims.

Scammers typically insist a victim pay advanced fees for services via wire transfer, gift card, payment app, cryptocurrency or cash. Organizations such as FEMA will never require a fee to get disaster relief. These agencies also remind consumers not to sign insurance checks over to someone else and to research contractors carefully, getting estimates from more than one before signing a contract for work.

If a scam is detected, the consumer should report it to the FTC at ReportFraud.ftc.gov. For more information, review the information on disaster scams on the FTC and CFPB websites. Consumers can also submit a complaint at consumerfinance.gov/complaint.

Reprinted from the Iowa Bankers Association.