Hurricane season officially began last week, and federal agencies are reminding consumers that when weather emergencies strike, scammers often follow.
The Federal Trade Commission (FTC) recently published a consumer warning that hurricanes, like other natural disasters, can unleash scammers hoping to get your money and personal information while you’re stressed, in a hurry or recovering from a loss. Post-disaster fraud costs Americans nearly $10 billion a year, according to the National Insurance Crime Bureau — and most of that comes during hurricane season.
Common schemes include FEMA impersonators who show up to solicit application funds, fake charities soliciting donations from well-intentioned bystanders and fraudulent contractors who take deposits before disappearing without doing any work.
The FTC’s advice is basic but worth reviewing: Before a storm hits, sign up for local emergency alerts, update your insurance and protect important documents. Only scammers will pretend to be government officials and ask for your bank account information, credit card or Social Security number. FEMA never charges an application fee.
Also, be especially wary of anyone who pretends to provide unsolicited repairs, cleaning or claims assistance. Don’t pay the full amount up front, sign insurance benefits under pressure, or give sensitive information to a contact unexpectedly. Remember that scammers thrive when victims feel like they have to act quickly.
The safest move after a storm is to slow down, make sure who you’re dealing with and use official channels for disaster relief. If you see a scam, report it to the FTC at ReportFraud.ftc.gov or the FEMA Crisis Fraud Hotline at 1-866-720-5721.
Some current scams to watch out for
Fake babysitting, bad checks
Child care providers are the victims of a new scam that starts with what looks like a promising new customer. According to the FTC, the scammers pretend to be parents in urgent need of childcare, often saying they are moving to the area from overseas and need someone to look after their children immediately.
The fake parent says they will send a check early, but it comes with a much higher amount than the agreed upon amount. Then, they say they “accidentally overpaid” and ask the child care provider to refund the extra money, usually via wire transfer or through a payment app. Even if the check first clears and the money appears in your account, it will eventually bounce — and you’re the one who has to pay the bank.
The FTC says a check for more than what you charge is a clear warning sign. Do not accept overpayments, and never send money to someone who claims to have overpaid you by check. The original client can cancel the payment and send the correct amount.
iPhone Lost Mode scam
A recent report from the San Francisco Chronicle explained how iPhone thieves can use the number shown in Apple’s Lost Mode to send threats or fake Apple support messages. When you mark an Apple device as lost, it locks it with your passcode, stops Apple Pay cards and can display a message or recovery phone number to anyone who finds it. But that number can also give thieves a way to contact you.
Their goal is usually to scare you into removing the device from your Apple ID. Once that happens, the stolen phone becomes much easier to sell.
Eva Velasquez, president and CEO of the Identity Theft Resource Center, told the Identity Theft Resource Center Histories putting the phone into Lost Mode means that thieves don’t have access to your personal information other than what you choose to show. His advice is to ignore the messages. The reason scammers resort to threats is because they have no power without your cooperation.
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The most common types of scams you should be aware of
Fraudsters are always upping their game, coming up with new and (their) fun ways to trick their targets. AI-powered scams are one example of this; technology is used to reach a large number of people with increasingly convincing techniques
But some tricks never go out of style. Most scams fall into a few common patterns, and many long-standing schemes are still a threat today. They have recently evolved to better fit today’s digital environment
- Fraudster scams: Fraudsters often pose as trusted figures such as government agencies, banks, employers and even friends or family to pressure victims into sending money or sharing personal information.
- Phishing and fraud: These scams use emails, texts or phone calls that appear to be from legitimate organizations. The goal is to trick you into clicking a malicious link, downloading malware or providing sensitive information
- Online shopping scams: Fraudsters can create fake online stores or listings with hard-to-find items at unusually low prices. After paying for an article, what you end up getting may be fake – or it may never arrive in the first place
- Investment scams: This type of scam often comes with promises of high returns from crypto, forex or other “exclusive” opportunities. Many involve long-term make-up schemes where victims are encouraged to invest more money over time before losing it all
- Scams in love:Some scammers try to get into your pocket by heart. They build relationships with you on dating apps or social media, then convince you to give up money and assets by creating contingency or investment opportunities.
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What to do if you are a victim – or the victim of a scam
No one is immune to fraud or embezzlement, but a few consistent practices can reduce their risk and the damage they cause.
First, be suspicious of unsolicited messages, especially those that create fear or urgency. This could look like an email from your bank threatening to close your account, a text from an online marketplace saying you’ll lose your rebate or a call from the IRS saying they’ll report you to the authorities unless you “act now.”
Scammers like to use this type of language because it puts you in a position, which they expect will move you to action.
Always confirm any requests from the organization by checking their official phone numbers, email or website. And don’t click on any links, download email attachments or reply to messages you suspect are fraudulent. A legitimate organization will not pressure you into immediate action or secrecy
Now, if you’ve already sent financial information or money to someone you suspect is a scammer, you’ll need to take a few steps to protect your data and possibly get your money back. Contact your bank, credit card company or payment platform immediately and try to stop or reverse the transaction. Be sure to change any passwords and enable multi-factor authentication to protect your accounts as well.
Reporting a scam can also help protect others. You can file a report with the Federal Trade Commission and local authorities at the nearest police department or sheriff’s office. Victims of identity theft should also consider temporarily freezing their credit
Finally, review your financial statements and credit reports regularly, keep your software up to date and limit how much personal information you share online. Fraudsters often rely on publicly available information to make their schemes more believable
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