Feds say scammers are targeting Hurricane Helene victims

More than 4,500 federal rescuers and aid workers are heading to areas devastated by Hurricane Helene. But U.S. prosecutors say another flood of people is on the way: charlatans, opportunists and unsavory entrepreneurs looking to exploit storm victims.

Federal, state and local authorities this week issued warnings to hurricane victims — especially those who are desperate — to be wary of people who show up at their doors or call them, claiming to want to help. Scamming hurricane victims and the U.S. Federal Emergency Management Agency itself is a multimillion-dollar industry for criminals, experts, federal authorities and government warnings say .

“Scammers and criminals may attempt to obtain money or steal personal information through fraud or identity theft after Hurricane Helen,” FEMA officials warned Tuesday. “In some cases, thieves attempt to seek assistance from FEMA using the names, addresses and Social Security numbers they stole from people affected by the disaster.”

In North Carolina, which includes some of the areas hardest hit by Helene’s flooding, the state’s top federal prosecutor said this week that criminals are adding to the deluge of an already historic disaster. At least 144 people died during Helene and hundreds of homes were destroyed.

“The impact of disasters affecting our citizens comes not only from the events themselves, but also from fraudsters who take advantage of disaster victims and good-hearted people who want to help those affected,” said Sandra J. Hairston , American Attorney for the Department of Foreign Affairs. Middle District of North Carolina. “These criminals take advantage of victims before, during and after a natural disaster, targeting people when they are most vulnerable. »

The schemes include fake charities soliciting donations for disaster victims, fraudsters posing as government officials distributing aid and fake businesses offering to help with recovery efforts, Hairston said.

Attorneys general in several states are warning people to be wary of the onslaught of scammers that typically appear in the wake of natural disasters and, some say, are already arriving after Helene tore six states apart.

Georgia Attorney General Chris Carr urged people to be on the lookout for home repair fraud, charity fraud, imposter scams and price gouging.

“As we pray for the families of those who lost their lives and for all Georgians affected by Hurricane Helene, our Consumer Protection Division continues to actively monitor reports of potential home repair fraud and other storm-related scams,” Carr said. “By researching a business or entrepreneur, you can help prevent one tragedy from leading to another.”

Investigators are familiar with the schemes from previous natural disasters. The National Disaster Fraud Center has received more than 220,000 fraud complaints since its inception in 2005. FEMA has an office dedicated entirely to fraud detection and offers a webpage where users can report scams.

To avoid being scammed, experts recommend verifying that people are who they say they are and being wary of anyone asking for sensitive information or money. Some cities, like Jacksonville, North Carolina, have created web pages describing the types of scams typically seen in the area. They also provide telephone numbers of agencies that can offer assistance and help to those who fear being the target of a scam.

Officials in Hillsborough County, Florida, have released a series of tips on how to avoid falling for a fake contractor, adding that “if it seems too good to be true, it usually is.” . Tips include:

• Make sure repairs are covered by insurance and have an insurance company assess the damage before arranging repairs.

• Get three written, detailed quotes for repairs.

• Never pay the full cost of repairs up front and be wary of large deposits.

Hélène will attract a flood of scammers

Widespread power outages and hundreds of billions of dollars in damage caused by Helene have created ideal conditions for scammers, experts say.

“This is going to be a real scam in terms of scams,” said Keith Tidball of Cornell Cooperative Extension, the New York branch of a government-funded program that deploys educators and researchers to help in disasters. Helene is “so widespread and destructive.”

Power outages can make it difficult to verify the identity of people or the legitimacy of a business.

“They certainly don’t have good, smooth internet to verify anything and that’s where these scammers are going to exploit,” Tidball said. “Unlicensed contractors are going to appear everywhere. They will promise quick repairs, fast service, probably quick money up front and a lot of people will be fooled.

People living in areas where power has been restored will also be targeted by scammers online, he said, as well as through postal mail claiming to be from FEMA or insurance companies.

FEMA has made enormous efforts over the decades to stop disaster relief scams, but it remains a relentless problem. After Hurricane Katrina alone in 2005, a specially formed federal Katrina Fraud Task Force brought federal charges against 907 people in 43 federal judicial districts across the country. Katrina launched a new era of hurricane fraud, costing taxpayers up to $2 billion in scams and the government’s failure to spot them.

Among those charged were:

• Two brothers who raised more than $48,000 for a fake charity allegedly linked to the Salvation Army;

• A pastor who tried to steal a $35,000 church repair grant for himself and used $10,000 of a repair loan to buy a Dodge Durango;

• A conspiracy of eight people who attempted to deceive FEMA by submitting 70 fraudulent requests for assistance.

“These times of trauma are such times of vulnerability and they are so adept at exploiting that,” Tidball said of the fraudsters. “This is the lowest form of exploitation and insensitive behavior. Your neighbor is helpless and you are going to come in and steal from him. This kicks them while they are at the Nth degree.

Lynne P. Klauer, a spokeswoman for the U.S. Attorney’s Office for the Middle District of North Carolina, said federal authorities have not yet opened an investigation. She said the office wanted to issue a warning quickly, given how often projects emerged after previous hurricanes.

Scammers defraud FEMA and local governments

The Justice Department has charged more than 900 people with fraud related to Hurricanes Katrina, Rita, Wilma, Gustav, Ike and other disasters, according to the FBI. Shortly thereafter, the National Disaster Fraud Center was established.

Cheating the government — primarily FEMA — out of disaster relief money is another form of widespread fraud, according to past cases of disaster scams. Other programs include companies with local government contracts failing to meet their obligations to perform FEMA-funded work.

Fraud against FEMA has become so widespread that the U.S. Office of Government Accountability in 2020 provided the disaster relief agency with recommendations on how it could avoid falling victim to fraud. scam. The accountability office has other criticisms of FEMA, including its failure to provide lessons to local governments on how to report fraud.

Fraud issues gained attention after Katrina, when federal investigators discovered fraudsters submitting numerous applications for assistance in the names of people who had never been affected by the hurricane.

In its November 2006 issue, Fraud magazine, a publication of the Association of Certified Fraud Examiners, wrote that hurricanes and other tragedies bring out the best – and worst – in human nature.

“We have seen an increase in national and man-made disasters. These tragedies have brought neighbors and nations closer together,” the magazine writes. “But catastrophic events are also a beacon for opportunistic predators and a magnet for various forms of deception for dishonest gain.

This article originally appeared on USA TODAY: Feds: Fraudsters target Hurricane Helene victims