Spotting disaster relief scams before they cost you

Fake charities

• Names that closely resemble real organizations, differing by one word.
• Pressure to give immediately, and a refusal to send written information first.
• Requests for gift cards, wire transfers, cryptocurrency, or payment apps. Legitimate charities take cards and checks.
• Thanking you for a previous donation you do not remember making.
• Verify before giving at the IRS tax-exempt organization search, or through a charity evaluator. A real charity will still be there in an hour.

Fake government aid

Federal and state disaster assistance is free to apply for. Anyone charging a fee to file a FEMA application, or promising a guaranteed approval or a specific dollar amount, is running a scam.

Real inspectors carry official photo identification and will already have your application number. They will never ask for it, and they never ask for banking details or a payment in the field. Ask to see the badge and write down the name.

Contractor fraud

• Door-knockers who happen to be in the neighborhood, especially with out-of-state plates and no local address.
• Demands for full payment up front, or cash only. A deposit is normal; the whole job is not.
• Pressure to sign today, or an offer to waive your insurance deductible, which is itself insurance fraud.
• No written contract, no license number, and no proof of insurance. Verify the license with your state's contractor board before signing.
• Anyone who wants to be paid by your insurance check directly, with an assignment-of-benefits form you have not read.

Three questions that end most scam calls

• "What is your full legal organization name and your EIN?" A scammer stalls; a real charity answers instantly.
• "Send me that in writing and I will call you back on the number I look up myself." Scams collapse when you control the callback.
• "Why does this require a gift card?" There is no legitimate answer, ever.

If you were already hit

Report it to the Federal Trade Commission at ReportFraud.ftc.gov and to your state attorney general. Call your bank immediately: wire transfers can occasionally be recalled within hours, and card charges can be disputed.

Reporting matters even when your money is gone. Aggregated reports are how these operations get shut down before they reach the next disaster.

Sources

• FTC charity scams
• FEMA disaster fraud

Keep reading

• Flash floods: why six inches of water is the number that matters
• How to find emergency shelter, and what to expect when you get there