Hurricane Victims Rebuilding Their Homes Face a New Risk: ‘Storm Scammers’

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In the wake of Hurricane Harvey, those whose homes were ravaged by the storm now face the arduous task of rebuilding—and many more may soon be in similarly dire straits as Hurricane Irma, having laid waste to the U.S. Virgin Islands and other Caribbean islands, advances toward Florida. And as if facing a waterlogged wreck of a house weren’t devastating enough, these people might also be vulnerable to a new threat: “storm scammers,” con artists who persuade homeowners to pay them for repairs they have no intention of doing—they just take the money and run.

According to CNN, since Harvey slammed into Houston last week, the office of the Texas attorney general has received over 550 storm-related complaints of fraud.

“Fraud affecting individuals and relief efforts are extremely common following disasters,” says Jordan Strauss, associate managing director of investigations and disputes at the risk consulting firm Kroll (he also served with the U.S. Department of Justice on the Hurricane Katrina fraud task force). “Much like other kinds of fraud, criminals take advantage of people when they are must vulnerable and in need of help.”

How storm scams happen

These people often go door to door posing as contractors offering discounted repair services, or as relief workers who can help victims obtain federal funding—for a small upfront fee, of course.

“Sometimes a person may show up, say that they can help expedite federal relief funds, or offer to ‘help’ with federal flood insurance payments,” Strauss explains to realtor.com®. “Other times, a victim may receive a phone call from a person claiming to be with FEMA, asking for their Social Security number in order to speed up benefits. Some fraud is done in person, and some is done over the phone or internet.”

Homeowners tend to fall victim to scams because they’re desperate to get repairs underway—or are just blind to the red flags.

Here are a few warning signs to watch out for:

• They’ll demand advance or upfront payment for work. “If someone asks you for money upfront, it’s a scam,” says Strauss.
• They offer repairs for a bargain-basement price. “If someone is claiming something that sounds too good to be true, it is,” says Strauss.
• They pressure you to agree or sign a contract on the spot. “Never sign a contract immediately with a company. Do your research,” says Marla Mock, vice president of operations at Rainbow International, a flood, water, and fire restoration company. “If someone at your door tries to pressure you into signing on the spot, alarm bells should go off in your head.”

How to protect yourself from storm scammers

While it’s hard not to accept help on your doorstep when you’re scrambling to put your home back together, knowing how to protect yourself from storm-related scams is a must.

Here are some tips to ward off storm scammers’ advances:

• Keep your personal info private. Never give out your Social Security number or bank account info, especially over the phone.
• Carefully vet anyone you want to work with first. Be sure to check that workers have proper licensing and insurance before hiring them. If your repairs include restorations, “ask for certificates from the Institute of Inspection, Cleaning and Restoration Certification, or IICRC, which ensures standards for cleaning and restoration work,” Mock says. Legitimate contractors should have no problem providing you with their license number, a list of references, and proof of disability and workers’ compensation insurance. If they make you feel like your due diligence is burdening them, they could be hiding something.
• Lean toward local contractors. Some contractors come into a disaster-stricken area from out of town to help families rebuild, but it might be in your best interest to stick with a local contractor. If you’re not satisfied with their job, getting a hold of someone in town to correct the problem can be much easier.
• Get it all in writing. With any business transaction, you must get everything in writing like the total work cost, work to be done, schedule, payment terms, and other expectations for the repairs. Never make word-of-mouth contracts or agreements, says Mock.
• Check it afterward. When the contractor says repairs are done, the Texas attorney general recommends having an independent insurance adjuster or real estate inspector check out the completed work before you make a full payment.

If you believe a fraud is underway, call the Department of Homeland Security Office of Inspector General hotline at 800-323-8603, or file a report online.

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