from Birch Gold Group:
When disaster strikes, communities rally together to rebuild – and there’s a lot that needs rebuilding! But unfortunately, where we see disaster, criminal opportunists see opportunity. Scammers are coming out of the woodwork, eager to exploit the chaos. Here’s how you can fight back…
When disaster strikes, communities rally together to rebuild – and there’s a lot that needs rebuilding! Over 12,000 structures, homes and neighborhoods, businesses and warehouses, are gone. Some 40,000 acres were burned. Preliminary estimates of the damage put the bill at $275 billion.
But unfortunately, where we see disaster, criminal opportunists see opportunity. Scammers are coming out of the woodwork, eager to exploit the chaos.
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From fake charity appeals to identity theft schemes, these con artists prey on the goodwill and vulnerability of those affected.
Here’s what you need to know to protect yourself and your finances from scammers.
To whom am I speaking?
These scams often start with impersonation.
Scammers pose as representatives from charities, government agencies or even utility companies to gain your attention – and then access to your personal information. The goal?
Usually, it’s a straight scam – collecting donations for a fraudulent charity, or convincing you to pay for a fraudulent service (like “expedited insurance claim review”). Sometimes, the criminal attempts to collect personally-identifying information to set the victim up for future identity theft.
Residents of affected areas have reported a flood of urgent calls, emails and social media notifications requesting immediate payments or donations.
What makes these tactics more than usually effective is their context. Virtually all my co-workers, my friends and business contacts know someone who’s been affected by this disaster. The massive news coverage of the wildfires spread the news even further. With that in the background, these fraudulent appeals all too often bear fruit.
High-pressure tactics designed to exploit the emotional impact of the disaster make their scams even more successful.
Specific scams targeting wildfire victims
Recently, officials in Los Angeles warned residents about scams targeting wildfire victims. Fraudsters contacted individuals claiming to offer government disaster relief, asking for Social Security numbers or bank details to “process aid.”
Others set up fake crowdfunding campaigns, using stolen images of destroyed homes to tug at heartstrings and pocket donations meant for legitimate victims.
Even rebuilding efforts have been infiltrated. Unlicensed contractors promising quick repairs frequently vanish after collecting deposits, leaving families worse off than before.
Suggestions for avoiding scams
Protect yourself from disaster-related scams with these tips:
- Verify charities and crowdfunding campaigns: Before donating, research the organization. Use sites like Charity Navigator to confirm an organization is legitimate. Don’t donate by phone! Instead, look up the charity’s website and make your donation online on a secure form (or call the charity directly). Be wary of crowdfunding campaigns without clear details or links to established nonprofits. As rewarding as it may be to contribute directly to the source, donating to charities instead gives you greater certainty that your money will be put to good use.
- Beware of unsolicited contacts: Government agencies, utilities and insurance companies very rarely reach out to you proactively. They’re even less likely to ask for sensitive information and then demand immediate payments. Don’t engage! Instead, hang up on your caller, delete suspicious messages and contact the agency directly using official channels.
- Research contractors and other vendors: Only hire licensed, bonded, and insured contractors. Check references and verify credentials with local authorities. Ask for references. Finally, never pay the full amount upfront, especially not in cash.
One thing I’ve learned over the years that’s helped me personally avoid any number of financial scams… Listen to your gut – especially when it says something’s wrong. Often, our instincts are more perceptive than we give them credit for. And our instincts are especially good at sensing when someone is up to no good.
What you can do
Wildfire victims are already facing immense challenges – don’t let scammers add to the burden. By staying vigilant and sharing this information, you can help protect yourself and your community.
