After disasters, people are especially vulnerable to scams. Here's how to protect yourself
During natural disasters like wildfires and floods, scammers often emerge to prey on victims
NEW YORK (AP) — During natural disasters like wildfires and floods, scammers often emerge to prey on victims.
People in heightened emotional states in the wake of a catastrophic event should be extra careful of impersonators asking for identifying details, according to Karina Layugan, an attorney with the Federal Trade Commission based in Los Angeles, where firefighters in the region are battling blazes that have already destroyed thousands of homes and killed at least 24 people.
Scammers sometimes pretend to be from the utility company or the Federal Emergency Management Agency and ask to “verify information.” If someone uses that phrase, ask why the individual needs that information and “always contact the company or agency directly,” she said. That's information those organizations should already have.
“It’s something that’s unfortunately very common,” Layugan said. “After disasters, people are also particularly vulnerable to people saying you need to ‘act fast’ and using urgency to pressure people into taking actions that might not be in their best interest.”
Layugan stresses that FEMA will never charge fees for applications for aid, and that people should be skeptical of anyone “who says they’ll help others get FEMA relief soon and who charges up-front fees.”
The same goes for contractors.
“After a disaster, people looking to rebuild will get a flood of contractors coming to them and saying they can help and they ‘know the system.’ Sometimes they’re looking for a quick payout,” Layugan said. “Be skeptical of anyone who promises immediate clean-up or immediate repairs. Oftentimes those types of individuals seek cash payments up front or do things without written contracts. Be very wary if anyone who wants cash up front or who urges you to ‘act immediately.’”
Online review sites and searches for the contractor's name with the word “scam” or “complaints” can help, as can confirming the license and insurance information of anyone you work with.
“Always do your own research and get a second estimate,” Layugan said.
In 2023 alone, roughly 1 million people reported identity theft, 2.6 million people reported fraud, and 1.9 million reported other types of scams to the FTC. Here are some ways to protect yourself from identity theft and scams, especially after disasters:
It can take time to realize your data has been stolen. According to the FTC, signs include:
— A phone, electricity, or gas account opened in your name
— Debt collection calls for accounts you didn’t open
— Bills for things you didn’t buy
— Medical bills or insurance charges for procedures you didn’t have
— Inaccurate information on your credit report
— Denial of loan applications
— Mail that stops coming to, or is missing from, your mailbox
— A missing tax refund or government benefits
If you notice any of the above, here’s what to do:
Contact:
— The FTC online at IdentityTheft.gov or call 1-877-438-4338. The FTC will provide you with an individualized recovery plan. Prompts and questions will ask you how the thief has used your data — whether to open credit card accounts, get a car loan or lease in your name, or to file for government benefits.
— The three major credit reporting agencies: Equifax, TransUnion, and Experian. Ask them to place fraud alerts and a credit freeze on your accounts to prevent further misuse of your data.
— The fraud department at your credit card issuers, bank, and other places where you have accounts, such as a medical insurance account.
By acting quickly, you can prevent consequences to your credit score and financial health. False information on your credit report can cause lasting damage if not addressed promptly. After you’ve done the above, continue to review credit card and bank account statements. Watch for and report any unauthorized or suspicious transactions.
The FTC recommends doing the following to keep your personal identity safe:
— Collect your mail every day and place a hold on your mail when you’ll be on vacation or away.
— Store personal information, including your Social Security card, in a safe place. Do not carry it in your wallet.
— Never share your bank account number or Social Security number, especially over the phone to unknown callers or via email or text.
While disasters can lead scammers to take advantage of vulnerable groups by impersonating representatives from relief and government agencies, or with contracting scams, other types of fraud and impersonation can also surround these events. If you're already feeling vulnerable, you may be more likely to fall for other types of fraud, such as:
— Tax and medical information theft
Medical ID theft and tax ID theft are common forms of identity theft, especially during tax season and Medicare re-enrollment periods.
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The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.
