While the aftermath of nature’s fury can be disastrous, it also brings out the true face of many people who come forward to help the victims. Unfortunately, there is also the risk of being exposed to con artists armed with illegal scams when affected individuals are most vulnerable.
To help avoid being conned whenever a disaster strikes, here are a few suggested steps:
Protect your personal information – a legitimate charity to which you donate will not need confidential data such as Social Security number, credit card or bank account numbers, or PINs or passwords. If asked for these details, there’s a good chance you’re dealing with a con artist who may use your personal information to steal your identity and make illegal purchases. If you are the victim of a disaster, don’t give your personal information to someone who contacts you and claims to be working for a federal agency, such as FEMA or the IRS. Instead, call the agency to verify that the request is legitimate.
Don’t give in to price escalations – some unscrupulous companies hike their prices after an emergency when people have an urgent need for their products or services. If you are quoted a price that doesn’t seem fair, contact your local police or state attorney general. It’s important to keep these price gougers out of the market so that everyone gets a fair price.
Do not pay fee for assistance – after a disaster, there will be lots of people going around claiming to provide vital services for a fee. Be aware that there’s no need to pay anyone to expedite any disaster assistance forms. Similarly, it should not be necessary to pay someone for help in applying for federal grants or loans for which you qualify. The agencies involved should be able to provide the help or information you need for free. Finally, if your property has been damaged and someone arrives at your door claiming they need to inspect the building, ask for identification and call the agency they claim to represent.
Donate to recognized charities – during an emergency, scammers often create bogus charities designed to do little more than line their own pockets. Don’t be conned by fake charities that have names that are very similar to those of a better-known group, or send out appeals via social media. If you’re approached to give, ask to see some kind of literature or documentation beforehand so you know who you’re dealing with, and don’t hesitate to research the group online or at your local library if you have suspicions about it. It’s also wise to pay by check or with a credit card so you have evidence of your donation if you need it. Ask exactly how much of your money will actually be used for charitable works and how it will be spent. The more information you have, the better able you’ll be to choose the right recipient.
Whether you have been the victim of a disaster or would like to protect yourself financially against a potential disaster, contact GKM (info@gkmtax.com) for advice on any of your financial questions or concerns.
