Scammers Target Disaster Areas Following Severe Storms

AARP Fraud Watch Network Warns Residents of Fake Contractors

News provided by

May 28, 2015, 12:43 ET

CHICAGO, May 28, 2015 /PRNewswire-USNewswire/ -- With spring transitioning into summer new threats loom over communities throughout Illinois as unpredictable bouts of severe weather pass through bringing destruction to neighborhoods. As residents prepare, or recover, from destruction caused by storms, tornadoes, and floods, AARP Fraud Watch Network has compiled a list of tips to help residents avoid frauds and scams following a natural disaster.

"People are most vulnerable following a severe natural disaster, and they're often looking to rebuild or repair home damage as quickly as possible to put the event behind them," said AARP Illinois Communications Manager Gerardo Cardenas. "Scammers and contract frauds know this and use homeowners' frazzled state of mind to trick them out of their hard-earned money."

Referred to as "wildcatting," scammers pose as supposed repair workers and bombard impacted neighborhoods telling homeowners in order to secure them as a contractor they need to provide a cash deposit to save a spot in their busy schedule. These scammers often take the money and run.

Tips to avoid disaster fraud:

Always ask contractors for references and call previous clients to verify their authenticity.
Write down driver's license and vehicle information (i.e. make, model, and license plate number) to report the contractor to authorities if needed.
Be skeptical of people promising immediate cleanup and debris removal. They may demand payment up front for work they'll never do, quote outrageous prices, or lack the skills, licenses, and insurance to legally do the work.
Get a written estimate and sign a written contract that includes description of the work to be performed, what materials are included, when the work will be completed, the price, and the address and phone number of the contractor.
Read agreements carefully before signing them and never sign a contract with blank spaces. Fake contractors sometimes enter unacceptable terms later on.
Before hiring a post-disaster contractor, ask your insurer to survey the damage and inquire about approved contractors.
Never pay in full in advance and don't pay cash—use a credit card or check. Ensure the contract specifies a schedule for releasing payments and before making the final payment, ask the contractor to provide proof that all subcontractors have been paid. Otherwise you'll be liable for their fees.
Ask your neighbors what they're paying for similar work.
Trust your gut and don't be pressured. If you have any doubts about hiring someone or entering into a contract, take your business elsewhere.

If you need help following a disaster scam call the local police and your local Attorney General's office to report the scam. Residents can also turn to the American Red Cross, DisasterAssistance.gov, and Ready.gov for information on how to get the help you need if your home suffers damages.

In 2014, AARP launched the Fraud Watch Network to arm Americans with the tools and resources they need to spot and avoid scams and identity theft. But scammers are still out there, making every attempt possible to cheat consumers out of their hard-earned money. The public can sign up for free to receive Fraud Watch Network alerts and more at www.aarp.org/fraudwatchnetwork.

SOURCE AARP Illinois