Beware of Potential Disaster Recovery Scams
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Collapse ▲Following natural disasters it is difficult to know where to turn for assistance and
information while struggling to adapt to your circumstances. We are fortunate to see
such an overwhelming response by North Carolina residents, organizations and
businesses who are eager to help in the recovery efforts. Organizing and managing
such a comprehensive and long-term campaign is challenging. Many individuals and
organizations become engaged in the process, and most are legitimate.
Unfortunately, along with the well-intentioned and authentic entities, other actors may be present. In a press release titled, Disaster Survivors Beware of Fraud and Scams, FEMA warns, “After a disaster, scam artists, identity thieves and other criminals often try to take advantage of disaster survivors. Federal and state emergency management officials urge residents to watch for and report any suspicious activity.”
They further advise residents to be aware of fraudulent practices, such as fake organizations asking for you to give money (federal and state workers will not ask for or accept money directly), fake property inspectors (do not give money or financial account information), and phony building contractors.
Be aware of possible price-gouging for activities such as debris and tree removal. This is from the N.C. Attorney General:
“Thank goodness many businesses out west are generously helping their neighbors in need. North Carolina has an anti-price gouging law to make sure that no bad actors try to take advantage of people’s desperation. My team and I aggressively enforce that law and won’t let them. We are taking a close look at the complaints we receive. We are already investigating some of the complaints we’ve received and are sending out three civil investigative demands.
“People in the western part of the state are still struggling to get connected to phones and the internet, and we know it may be hard for them to file complaints with our office right now. The last thing they need is to get scammed while they’re trying to recover. Please share the word about our price gouging law with your friends, families, and social networks, and please encourage anyone who has concerns to report them to my office. We can only get through this catastrophe by looking out for each other.”
Additionally, there may be interest from what are known as “disaster investors,” who may contact those who have heavily damaged property with offers to purchase. This from an article on the National Association of Realtors website titled, The Rise of the Disaster Investor:
“Hurricanes. Tornadoes. Floods. Wildfires. They drastically alter the lives of thousands of property owners. The destruction they cause is onerous.Those affected are often overwhelmed as they have to pick up the pieces. And then there are those who look to profit off this misfortune. Some might call these opportunists exploitive. Some might call them vultures. And while they would rather be called ‘disaster investors,’ despite the negative reputation they may have, these people feel like they are helping communities that were damaged by these natural disasters.”
In summary, residents should be very careful as they navigate the path to recovery. Be sure to deal only with reputable organizations and businesses, take time to consider any impactful actions regarding property, and where there are questions or concerns, contact local authorities, state agencies (e.g. the N.C. Department of Justice – ncdoj.gov), or federal agencies for information.