Stay Safe: How To Spot And Avoid Hurricane Helene And Milton Scams
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A Note From Patricia:
Hello and welcome to Forbes Advisor’s Weekly Brief, where we dive into the realities of consumer finance and empower you with knowledge to help make your financial journey easier.
Hurricanes Helene and Milton have devastated the Southeast, leaving towns submerged in water and destroying homes, power lines and roads.
And although the storms have passed, those affected are now facing new threats: Price gouging and scams. In this week’s Forbes Advisor Weekly Brief, we’ll discuss how to spot and avoid these scams and how to safely contribute to relief efforts.
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Stay Safe: How To Spot And Avoid Hurricane Helene And Milton Scams
Scam artists love to take advantage of chaos and desperation during times of crisis, and the aftermath of these back-to-back hurricanes is no exception.
Post-Helene and Milton, the Department of Justice has received hundreds of complaints of price gouging, a shady practice where businesses raise prices on essentials to unreasonable levels during emergency situations. Most complaints were related to price increases on food, water, fuel and overnight accommodations. One stark example of this was a reported Airbnb listing for a room in Tallahassee priced at almost $6,000 per night.
Fraudsters are also targeting victims by posing as representatives from official agencies including FEMA or the Red Cross, or as contractors offering repair services such as tree removal or home rebuilding.
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These scammers may request personal or financial information, which can quickly lead to identity theft. In other cases, they may demand payment upfront for services they will never provide.
Unfortunately, the swindling doesn’t stop there. Scammers also aim to take advantage of those wanting to help hurricane victims by creating fake charities and crowdfunding campaigns, often soliciting donations through social media posts, phone calls, text messages, or even showing up at your front door. The Red Cross warns of a common email scam coming from a “redcross.net” email address and advises consumers not to click on any links or enter personal information solicited in these fake emails.
Here are a few more ways to protect yourself from falling victim to price gouging and other scams:
Before donating: Do your research before donating money to a charity, even if someone has arrived at your front door. Make contributions to known organizations by navigating directly to their websites, and never pay through wire transfers or gift cards. The Federal Trade Commission has a list of verified charities and safety guidelines for donating. One trustworthy charity you can donate to is the American Red Cross, as they are currently providing food, shelter and support for hurricane victims in the Southeast.
Verify disaster-relief services: If you have applied for disaster assistance through FEMA, they may contact you using the information you included on your application through phone calls, text messages or email. However, it’s important to note they will never request money or promise that you will receive a grant. You can verify if you have a home inspection with FEMA by calling the helpline at 1-800-621-3362. Be sure to ask any inspectors who visit your property for their identification and official badge that shows their name and photo.
Before hiring a contractor: Before hiring anyone for repair services, ask them for their information and credentials to verify their legitimacy. They should be licensed through your state or county and provide proof of insurance. Research them online, read reviews from other customers, look them up on the Better Business Bureau, or through your attorney general’s business listing database. Lastly, never pay a contractor in full upfront; most states limit the amount of money a contractor can request for a down payment. You can contact your state or local consumer agency to check the laws in your area.
Report fraud when you see it: If you see an instance of price gouging, document evidence with photos or receipts and report it to your state attorney general’s office. You can report other disaster-related fraud to the National Center for Disaster Fraud (NCDF) online or through the hotline at 866-720-5721.
For more information on disaster assistance and how victims can receive critical help, read more here.
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