How to Avoid Disaster Relief Scams

In the wake of natural disasters like the recent California wildfires and South Carolina hurricanes,  victims face numerous challenges, including the risk of falling prey to scams. At the same time, generous individuals looking to help those in need must navigate a landscape riddled with fraudulent charities. Here’s how to protect yourself as a disaster victim and make informed decisions when donating to causes.

Victim Focused Scams

Be Wary of Unsolicited Offers

Scammers frequently take advantage of disaster victims by providing unsolicited assistance. Exercise caution when receiving unexpected messages on social media platforms that offer help with insurance claims, locating lost pets, or providing legal support. These “assistance services” often demand upfront fees, which scammers pocket for themselves.

Verify Housing Opportunities

If you are looking for temporary housing, expect to see some fraudulent rental listings and inflated prices scattered among real housing options. Scammers are known to post fake ads and ask for security deposits for properties that do not exist or that they do not own. Always confirm the authenticity of properties and landlords before making any payments.

Beware of Contractor Scams

As rebuilding efforts begin, exercise caution against scammers impersonating contractors. They might request upfront payments and then disappear with your funds. The Federal Trade Commission (FTC) recommends verifying contractors’ credentials and steering clear of substantial upfront payments.

Watch Out for Government Impersonators

Stay alert to unsolicited communications from individuals who falsely claim to be FEMA representatives or other government officials. Federal agencies do not impose fees for assistance related to disasters. Always confirm the identity of anyone asking for personal information or fees for disaster-related services.

Protect Your Sensitive Information

• Do not click on hyperlinks in emails or text messages from unfamiliar sources.
• Be cautious when sharing personal information on social media, as scammers can use it to craft believable targeted messages.

Monitor Your Accounts

Sign up for transaction alerts with your card issuer. These customizable alerts can help you confirm legitimate purchases and notify you of suspicious activity.

Donor Focused Scams

Watch Out for Fake Charity Websites

Some scammers establish fraudulent websites that replicate legitimate charities. These sites may feature layouts, designs, and wording that resemble those of official charities. Always verify the URL and utilize official channels to make donations.

Consider using credible watchdog sites, like the Better Business Bureau’s Wise Giving Alliance, Charity Navigator, or Charity Watch, to confirm the organization’s legitimacy.

Be Cautious of Social Media Appeals

Scammers frequently exploit social media to solicit donations and request payment through familiar payment systems. Exercise caution with posts that include links to cryptocurrency wallets or trusted peer-to-peer accounts, like Zelle®. Always confirm the legitimacy of a charity before making donations via social media platforms.

Legitimate charities will not pressure you to make an immediate donation. Take your time to conduct research and make a well-informed decision.

What to Do If You Suspect a Disaster Relief Scam

If you suspect a scam, follow these steps:

• Stop communication with the scammer.
• Scan your bank statements and credit reports for any unusual activity.
• Report unauthorized charges to the applicable financial institution.
• Change your login credentials, passwords, and PINs for all affected accounts.
• Set up a fraud alert with at least one major credit bureau to make it more difficult for someone to open new accounts in your name.
• File a complaint with the Better Business Bureau (BBB), FBI Internet Crime Complaint Center (IC3) and the Federal Trade Commission (FTC).

Natural disasters provide scammers with opportunities to exploit both victims and charitable donors. Remain vigilant, confirm information, and adhere to best personal and financial security practices to safeguard yourself against fraud and ensure that your donations support legitimate causes.