Financial scammers will take advantage of any disaster, natural or otherwise

The outpouring of help and support that Americans showed after the disasters of September 11, 2001 and Hurricane Katrina was certainly laudable. People gave cash, jobs, meals and places to live to total strangers in a time of need. This sort of showing of compassion is one of the reasons that Americans have to be proud of their country. Unfortunately, along with the good comes that bad, and such disasters always bring out those who intend to defraud others out of their money.

In the aftermath of Hurricane Katrina, a number of different financial scams popped to the surface:

Callers participating in telephone fraud often pose as charitable organizations, asking for donations. When the victims provided credit card information, the scammers had all they needed to perpetrate identity theft.

Contractors promising repairs - They would offer to fix damaged roofing and other parts of flood damaged homes. Once paid, they would either do poor work, or none at all, or they would do the work but charge far more than the going rate for such repairs.

Such scams are inevitable during times of disaster, but there are ways that they can be avoided:

• Give to charities with which you are familiar. Why give to a stranger that calls you? Why not seek out known charities, such as the Salvation Army, or the Red Cross? That is far safer than answering the phone and donating to whomever calls.
• If you are suspicious, you might wish to check with the Better Business Bureau to see if the caller is legitimate.
• If solicitations are made for donations, do not pay cash. Pay with a check or credit card. If using a credit card, be careful, as someone posing as a charitable organization could be doing so just to steal your card number.
• Do not provide any other personal information, such as banking or Social Security numbers to someone who calls you.
• Do not let yourself be pressured into giving money if you are not comfortable doing so. Many scammers specialize in urging people to donate “today.” If they’re really interested in your charity, they will be willing to accept it tomorrow or next week or even next month.

In times of disaster, it’s great to offer what you have and to be generous. You never known when some disaster may occur in your area, causing you to become a victim. Still, that is no reason to be careless. If a disaster occurs and someone calls to see if you would like to donate money to the cause, take the time to check them out. It is one thing to give a little bit of your money to those in need, but it is another thing entirely to lose everything you have because you got careless and gave vital personal information to someone who used it to participate in identity theft at your expense.

Despite the good intentions of many, it’s a dangerous world out there. As always, be careful.

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