Beware Winter Storm Scams: Protecting Consumers from Fraud Amidst Natural Disasters

Winter storms hitting the Midwest and impending tornadoes and floods in the Southeast bring not only natural threats but also the looming danger of scammers targeting vulnerable consumers. Fraudsters, seizing opportunities presented by weather-related challenges like power outages and property damage, are devising schemes to exploit unsuspecting individuals.

One significant challenge faced by consumers is distinguishing between legitimate contractors and potential scammers amidst the chaos. The Federal Trade Commission (FTC) issues cautionary signals, emphasizing the risk of utility impostors claiming the need for post-storm repairs or replacements and demanding immediate payment. Gema de las Heras, a consumer education specialist at the FTC, advises against falling for such scams.

The FTC underscores the importance of verifying a contractor's authenticity by checking their license, insurance, and written contract. Consumers are encouraged to consult their state or county government for confirmation and utilize online platforms to scrutinize a contractor's credibility, such as checking business listings on Google or NextDoor and thoroughly reading reviews.

A crucial red flag is the demand for cash payments. The FTC warns against such transactions and recommends protecting oneself by paying with a credit card only after the completion of the work. This precautionary measure ensures a level of financial security for consumers.

Scammers often adopt an official-sounding representation, posing as utility company personnel or government officials offering assistance programs. The FTC advises individuals to independently verify such claims by contacting the relevant authorities or checking official sources like Benefits.gov for legitimacy. Additionally, consumers are urged to be cautious of requests for sensitive information, such as Social Security numbers or payment for FEMA application fees, as these are indicative of potential scams. Vigilance and thorough verification are crucial in safeguarding against the myriad scams that may arise in the wake of natural disasters.