SmartBanking Blog

Fraud Talk: Weather-Related Scams

                As the weather turns more severe all over the United States, it is important to be aware of the various ways scammers take advantage of those storms. Unfortunately, weather related damage can be very lucrative for people with bad intentions. This storm season, arm yourself with the knowledge necessary to avoid these weather-related scams.

                It is a sad fact that those who wish to steal your money will take advantage of natural disasters and other weather-related harm. These imposters will usually disguise themselves as a government or utility employee or an unlicensed contractor. Depending on the type of scam you are confronted with, there are several things you should look out for in order to spot these scams—as well as easy ways to avoid them altogether.

Unlicensed Contractors

                Hiring unlicensed contractors comes with many risks. Many times, these contractors will take your money and never actually perform work or leave before completing the work. Often, these contractors also lack the necessary skills to properly perform the work.

How to avoid this situation:

• Hire only licensed contractors that are insured
• Never pay in cash or pay in full until the work is completed and you are satisfied
• Get references
• Ask for a contract and fully read all terms and conditions

If you are unsure if a contractor is licensed or not, you can verify with your state or county government office. You are also completely within your rights to ask for proof of insurance and any references they have.

Utility or Government Official Imposters

                You may be inclined to trust someone who shows up in a uniform, claiming they need to do necessary repairs or replace equipment. However, you need to know that utility and government workers are often impersonated by scammers to gain your trust and access to your money and information.

How to avoid this scam:

• Do not pay for any repairs, equipment replacement, or aid*
• Ask for IDs and contact the appropriate entity at a trusted number
• Never give financial or personal information

*FEMA will never charge for an application fee.

                The bottom line is that if someone claiming to be from a utility company or the government asks for payment or personal information (such as your social security number) it is a scam.

Other Weather-Related Scams

                Other common weather-related scams are disaster-related charity scams and rental listing scams. Charity scams related to natural disasters can happen at any time. Avoid these scams by searching lists of vetted charities, being alert for spoofed websites impersonating legitimate charities, and being skeptical of callers thanking you for a pledge you never made.

                Rental listing scams are also rampant in areas that have seen natural disasters or severe weather. Scammers know people who lose their homes or residences will be looking for alternative living arrangements. They will often list properties that either don’t exist or that they don’t own in order to scam people out of money. Avoid these scams by not wiring or giving money for things like security deposits or rent before you have seen the unit or signed a lease.

                As weather turns more severe in the winter months, keep an eye out for those looking to take advantage! Avoid scams by stopping, verifying, and questioning those who solicit you during this time.

Sources:

https://consumer.ftc.gov/consumer-alerts/2024/01/tracking-first-winter-storms-year-so-are-scammers

https://consumer.ftc.gov/features/dealing-weather-emergencies#stayingalert

https://consumer.ftc.gov/consumer-alerts/2023/01/how-spot-avoid-and-report-weather-related-scams

https://community.fema.gov/PreparednessConnect/s/article/Stay-Alert-for-Weather-Related-Scams