FEMA Warns of Scams and Fraud After Recent Storms

The Federal Emergency Management Agency is warning folks to be on the look out for scams in the wake of recent damaging storms.

Be suspicious if a contractor:

Demands cash or full payment up front for repair work;
Has no physical address or identification;
Urges you to borrow to pay for repairs, then steers you to a specific lender or tries to act as an intermediary between you and a lender;
Asks you to sign something you have not had time to review; or
Wants your personal financial information to start the repair or lending process.

To avoid scams:

Question strangers offering to do repair work and demand to see identification;
Do your own research before borrowing money for repairs.

Compare quotes, repayment schedules and rates. If they differ significantly, ask why;
Never give any personal financial information to an unfamiliar person;
Never sign any document without first reading it fully. Ask for an explanation of any terms or conditions you do not understand.

Disasters also attract people who claim to represent charities but do not. The Federal Trade Commission warns people to be careful and follow some simple rules:

Donate to charities you know and trust. Be alert for charities that seem to have sprung up overnight.
If you're solicited for a donation, ask if the caller is a paid fundraiser, who they work for, and the percentage of your donation that will go to the charity and to the fundraiser. If you don't get a clear answer - or if you don't like the answer you get - consider donating to a different organization.
Do not give out personal or financial information - including your credit card or bank account number - unless you know the charity is reputable.
Never send cash: you can't be sure the organization will receive your donation.
Check out a charity before you donate. Contact the Better Business Bureau's Wise Giving Alliance at www.give.org.