Financial institutions can help customers avoid these scams by:
- Reminding them to research a charity’s annual reports, tax forms, and audits or speak with a representative before donating.
- Advising them to donate directly through an official charity website rather than clicking on links in unsolicited messages.
- Warning them to be cautious of crowdfunding requests unless they can confirm a direct connection to the recipient.
Government grant scams
This type of imposter scam occurs when scammers impersonate government officials, promising relief money to those who fill out an application form with their personal information. Sometimes, these offers of relief come with an application fee or assertions that the relief funds can be expedited for a cost. Fraudsters may also offer to help victims apply for disaster relief grants, charging fees for their services or stealing personal information under the guise of assisting with applications.
Disaster fraud scammers may pose as Federal Emergency Management Agency (FEMA), the Small Business Administration (SBA), or other government agencies using domain names similar to these well-known organizations. They may call or email individuals, claiming they need social security numbers or bank account details to process claims.
Applying for federal disaster assistance is free and does not require payment. It is important to teach customers that government agencies will not call, email, or text you and ask for money or personal information. Only a scammer will do that.
Financial institutions should:
- Remind customers that government relief programs do not charge fees.
- Advise customers to apply for aid only through official websites.
- Encourage customers to verify any unexpected requests for personal information by contacting the agency directly.
Contractor scams
Unlicensed or fraudulent contractors often approach disaster victims, offering quick repairs at low prices but disappearing after taking upfront payments. Others may demand full payment in cash before starting work.
Following Hurricane Helene, imposter scammers targeted affected Asheville, North Carolina residents. Posing as "FEMA-authorized" tree removal experts, these con artists charged homeowners $280 for services they never intended to provide. Authorities urged individuals to obtain written service estimates, avoid upfront payments, and thoroughly research businesses before engaging in their services.
Financial institutions can:
- Recommend that customers verify contractor licenses through state or local licensing boards.
- Encourage obtaining multiple written estimates and checking references before hiring a contractor.
- Advise against paying in full before work is completed.
