Don’t let scammers make weather disasters worse

According to a recent article on AARP’s website, disasters in the U.S. during 2023 caused $95 billion in losses. If you find that number shocking, you may find this even more so: according to the National Insurance Crime Bureau, nearly 10 percent of those losses, or $9.3 billion, were due to post-disaster fraud.

There’s a criminal subculture that sees fire, flood, and ruinous storms as an opportunity. People are often at their most vulnerable in the aftermath of catastrophe, and that can make them easy prey for scammers. It pays to be aware of the most common forms of post-calamity fraud and what you can do to help protect against it.

Know the signs

Forewarned is forearmed. If you know ahead of time about the tactics these crooks use, it can help you to avoid their traps.

The panic and confusion common among disaster victims is the scammers’ friend. They will often push you to make snap decisions about mitigating damage and loss without thinking through what you’re agreeing to. Here are some red flags:

They approach you — often over the phone or through social media — without being solicited, with an offer of a grant, a low- or no-interest loan, or other form of assistance, just when you need it most. The details are vague, but they say everyone qualifies; all you need to do is apply. However, even when government funds have been allocated to help communities recover from disaster, aid never comes with “no strings attached,” and aid programs are most often run reputably by organizations, institutions, and state offices that provide trustworthy oversight and administration.
They say they’re from a charitable organization or even claim they’re representing one of your family members. They might say your loved one is in trouble and needs your help right away and may even make a phone call in what sounds like that loved-one’s voice. This “grandparent scam” uses AI, voice-cloning, or other technology to make a convincing plea. Stop, think, and use alternate sources to confirm that the crisis they’re alleging is real.
They want you to pay a low “processing fee” to get the money taps turned on and require you to give them your personal information. No legitimate representative of the Federal Emergency Management Association (FEMA), the Small Business Administration (SBA), or any other government entity will ask for your account number, your Social Security Number, or other personal data during a phone call, nor will they levy up-front costs to consider you for assistance.
They offer to move you to the front of the line to get your repairs completed or utilities restored if you pay them a deposit or fee.
They offer to “work with” your insurance check if you’ll just sign it over to them before work begins. Once they have the endorsed check in hand, they can simply disappear. They may also say they can help speed up the payment of your insurance claim if you pay them for the service.
They claim there’s damage where there isn’t. For instance, they may claim they need to do a complete tear-off on your roof and gutters when that simply isn’t necessary. Some scammers will even take a hammer to your roof when you’re not watching. Walk around with them when they’re conducting a post-storm inspection. Ask them to show you the damage and ask for a clear explanation of why the repairs are needed and how they plan to conduct them.
They offer you a “deep discount” if you sign a binding contract immediately. They may also want you to authorize them in advance to fix whatever they run into, because “you can never tell” what you’re going to see until you start. This is like giving the scammer a blank check.
Their view book illustrating past restorations only includes out-of-state projects. It’s best if you go with a contractor that has a local presence. You should get several bids from other contractors as well and call their references.
They want you to pay for all repairs up front, using wire transfers, gift cards, payment apps, cryptocurrency, or cash. Reputable contractors might ask for a deposit, but they’ll never ask for payment in full before they touch a hammer. You need to be able to stop payment on the check — or better yet not write one — if it looks like the work is substandard.
They offer to perform repairs on an unrealistic schedule — a promise they have no intention of keeping.
They claim they don’t need to be licensed to do the work and may be evasive about whether they’re covered by insurance. Don’t be fooled, and don’t take their word for it. Ask for proof of both these important qualifications.
They say financing will be easier if you borrow money from a lender they’re familiar with — one that offers favorable terms. If the terms of a loan sound too good to be true, they probably are.

Suspect you’ve been scammed?

If you’ve already been scammed by fraudsters and have sent a check or even transferred money via wire, you may still be able to stop the transaction from going through.

Contact your bank right away to see if they can stop payment of your check or otherwise reverse the charges. If you paid with a credit card, your card’s issuer may also be able to stop payment.
If you’ve sent money via wire transfer, contact Western Union’s fraud hotline (800-448-1492) right away. For MoneyGram, call 800-926-9400 or report the fraud online.
Report the criminal to the Federal Trade Commission (FTC) online or at 877-382-4357, or the FBI’s Internet Crime Complaint Center at www.ic3.gov. You might also want to notify your state attorney general’s office.

Sources: Federal Trade Commission Consumer Advice; FEMA Disaster Relief

The information included here was obtained from sources believed to be reliable, however Grinnell Mutual Reinsurance Company, SI, and its employees make no guarantee of results and assume no liability in connection with any training, materials, suggestions, or information provided. It is the user’s responsibility to confirm compliance with any applicable local, state, or federal regulations. Information obtained from or via Grinnell Mutual Reinsurance Company, SI, should not be used as the basis for legal advice and should be confirmed with alternative sources.

4/2025