02 Mar How to survive disaster scams
Surviving Disaster Fraud & Recognizing Scams
Whenever natural disasters occur, unfortunately, scams inevitably follow. These fraudulent activities can target individuals and businesses, exploiting disasters’ chaos and vulnerability. Sunwest Bank is here to provide our clients with the knowledge and tools to protect themselves from these malicious schemes that target those who have just had their entire lives changed or kind people hoping to help those in need. Here’s how to survive disaster assistance scams and ensure your safety and financial security.
Recognizing Common Disaster Relief Scams
Disaster scams come in many forms, from fake charities to impersonation schemes. Being aware of these scams and understanding how they work is the first step in protecting yourself and better understanding cybercrime. Due to the eagerness of many people to help, missing the signs of disaster fraud can be easy and results in scammers making thousands of dollars and stealing information from many people.
Fake Websites and Charities
After a disaster, fraudulent websites often appear, claiming to offer help or solicit donations. During Hurricane Katrina, these schemes were so common the FBI established The Hurricane Katrina Task Force specifically to identify and shut down all of the fraudulent sites and charities that popped up. These sites trick people into donating money, which ends up in the hands of scammers instead of helping those in need.
How to Avoid Fake Charity Scams
- Verify the Authenticity: Always type the charity’s URL directly into your browser instead of clicking on links in emails or social media posts.
- Research Charities: Use resources like org to check the legitimacy of charitable organizations. Also, find and read reviews of the organization you are considering.
- Avoid Cash Donations: Use checks or credit cards to ensure there is a record of your donation. This will be a great help in getting you a proper resolution.
Email and Social Media Scams
Scammers exploit social media and email to spread malware and steal personal information. They may send emails with attachments or social media posts with images of the disaster, which can contain viruses and Trojans. Others offer to locate loved ones for a fee or solicit money under false pretenses.
Protecting Yourself from Email and Social Media Scams
- Do Not Click Links: Verify the sender’s authenticity before clicking any links. These links will typically come from profiles or addresses that are clearly fake and unassociated with a real organization.
- Avoid Opening Attachments, Especially those claiming to show pictures of the disaster, as they may contain malware.
- Be Skeptical of Requests for Money. Always verify their legitimacy first, whether the requester is claiming financial assistance or offering services.
Impersonation Scams
Impersonation scams involve fraudsters posing as government officials, insurance company representatives, or federal and state workers. They offer expedited disaster assistance but are after your personal information to commit identity theft.
Identifying and Avoiding Impersonation Scams
- Verify Credentials: Ask for identification and contact the organization they claim to represent to confirm their legitimacy.
- Do Not Share Personal Information: Never provide your Social Security number, bank account details, or other sensitive information unless you know the recipient’s identity.
Contractor Scams
After a disaster, fraudulent contractors may offer services like debris removal and home repairs. They ask for money upfront and then disappear without completing the work.
Safeguarding Against Contractor Scams
- Check References: Use the Better Business Bureau to verify the contractor’s license, credentials, and track record.
- Avoid Upfront Payments: Pay only upon completion of the work or according to a mutually agreed-upon schedule.
As a general rule, remember, you do not need to accept the help right away if you are suspicious of a scam! Do not feel pressured into saying yes to anyone. Those who are actually trying to help will not make you feel rushed or pressured. Take your time to research what you can about the organization and make an informed decision.
Key Questions to Consider
When facing potential disaster scams, and whenever a financial transaction such as a donation is involved, take the precautions you would before shopping online on a new site or store and ask yourself the following:
- Is the source trustworthy?
- Can I verify their claims independently?
- Am I being pressured to act quickly?
- What do local law enforcement and the Better Business Bureau say about this organization?
Action Steps and Best Practices
Adopting a proactive approach can significantly reduce your risk of falling victim to disaster scams. Here are some best practices:
Stay Informed
Knowledge is your best defense. Familiarize yourself with common scams and stay updated on new tactics used by fraudsters. Check reputable sources like the Federal Emergency Management Agency (FEMA) and the Federal Trade Commission (FTC) for updates regularly.
Report Suspicious Activity
If you suspect a scam, report it immediately. Contact local law enforcement, the Better Business Bureau, or report the incident to FEMA. Prompt reporting can help prevent others from becoming victims.
Implement Strong Security Measures
Ensure the security of your personal and financial information. Use strong, unique passwords for online accounts and enable two-factor authentication where possible. Regularly monitor your bank account and credit report for suspicious activity.
Avoid Turning a Natural Disaster Into a Personal One
Disaster scams are a harsh reality, but with vigilance and the right knowledge, you can protect yourself and your loved ones. Sunwest Bank is dedicated to providing our clients with the resources they need to stay safe and secure. By staying informed and adopting best practices, you can confidently navigate the aftermath of a natural disaster.
It’s important to remember that even knowledgeable people fall victim to cybercrime occasionally, so do not feel ashamed if it does happen. Keep receipts and report any scams when you come across them.
For more information on protecting yourself from disaster scams, visit the FCC, Consumer Finance, or FTC websites. Remember, your security is our priority at Sunwest Bank.