Hurricane season brings warning: $9.3 billion in storm-related fraud

As hurricane season begins, scammers are ready to target disaster victims and those wanting to help. Post-disaster fraud costs Americans nearly $10 billion annually, with the National Insurance Crime Bureau reporting that these scams steal more than $9.3 billion each year.

We've seen firsthand the devastating impacts of hurricane season here in Southwest Florida. Many people want to rebuild their homes soon after a storm, but that's when scammers and fraudsters pounce.

Common post-disaster scams include FEMA impersonators requesting application fees or personal information, fake charity and crowdfunding schemes, shoddy repair work from contractors who disappear after taking payment, and rental scams featuring fake properties with real photos.

Margarita Alvarez, who oversees payment risk programs at Wells Fargo, emphasizes the importance of caution when making transactions after a disaster.

"It's really important to not feel pressured to make an immediate payment, via methods like crypto, wire transfers, cash, gift cards. Because those are going to be ways that are difficult to be able to recover and could cause some serious financial implications," Alvarez said.

You don't even need to be a storm victim to become a scam victim. When devastating natural disasters occur, many people want to help, creating opportunities for scammers to pose as bogus charities.

To protect yourself before hiring a contractor, experts recommend being proactive by assessing damage and contacting your insurance company first. Research potential contractors thoroughly, verify their credentials, and get multiple quotes for comparison.

Always insist on a detailed written contract before making any payments and ensure you're working with a licensed contractor. Stay involved throughout the project, maintain records of all communications, and don't hesitate to seek legal advice if problems arise.

This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.