In the aftermath of natural and manmade disasters, when people are most vulnerable, scammers seize the opportunity to exploit those in need. Disaster relief scams often involve fake charities, fraudulent contractors, and deceptive offers for financial aid or assistance. Scammers may pose as nonprofits during times of crisis to exploit goodwill and gather donations intended for those in need. Others may pose as relief agencies or repair specialists to con people out of money or personal information. These tactics prey on the chaos and desperation following disaster events, making it crucial for people to be aware and cautious during such times.

According to the Federal Trade Commission (FTC), reports of fraud surged after Hurricane Katrina and other more recent disasters, with scam losses often reaching millions to fake charities and fraudulent home repair schemes. This alarming statistic shows the scale of the problem and underscores the importance of staying vigilant when seeking help during and after a disaster.

DOs and DON'Ts to Avoid Disaster Relief Scams:

• DO research charities before donating. Verify their legitimacy through the IRS’s charity database or other trusted sites to confirm they are registered with appropriate regulatory bodies.
• DO make sure donations are made through reputable platforms or directly on the nonprofit’s official website. Avoid links shared via social media or unsolicited emails.
• DO ask for identification when approached by a contractor or aid worker and confirm their affiliation with known organizations.
• DO avoid paying in cash upfront for repairs or services. Use traceable payment methods like checks or credit cards.
• DO get multiple bids from contractors for repair work and insist on written contracts with clear terms.
• DON’T give out personal financial information over the phone or through email to unsolicited contacts.
• DON’T rush to hire a contractor or donate to a charity without thorough vetting, no matter how urgent the situation feels. Investigate before you act.

If you encounter a potential scam, report it to the authorities to help protect others. And if you suspect your accounts have been compromised due to fraud, please contact Client Services immediately at 855.343.4070, Monday - Friday, 7:00 a.m. - 6:00 p.m. PT, and Saturday, 9:00 a.m. - 1:00 p.m. PT. 

For more tools and tips, visit Pacific Premier Bank’s Cybersecurity Center.

The information expressed is being provided for informational and educational purposes only. It is not intended to provide specific advice or recommendations for any individual or business. Pacific Premier Bank does not provide tax, legal, or accounting advice, and the information contained herein should not be construed as such. You should carefully consider your needs and objectives before making any decisions. For specific guidance on how this information should be applied to your situation or business, you should consult your own tax, legal, and accounting advisors before applying any recommendation.