Multiple federal agencies posted a warning to consumers to be on the lookout for price gougers and scammers looking to capitalize from natural disasters.
The warning came on Wednesday from the Department of Justice and other agencies hours before Hurricane Milton's landfall. The agencies said consumers often face extreme stress and can fall prey to such schemes.
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Officials were warning of the following scams:
- Fraudulent charities soliciting donations for disaster victims that often imitate the names of charities linked to the disaster
- Scammers impersonating government officials, offering disaster relief in exchange for personal information or money
- Scammers promoting non-existent businesses or investment opportunities related to disaster recovery, such as rebuilding or flood-proofing
- Price gouging for essential goods and services needed by disaster victims
- Businesses using supply chain disruptions as a cover for collusion to overcharge customers
“As Americans seek safety from natural disasters, we’re hearing troubling reports of price gouging for essentials that are necessary for people to get out of harm’s way — from hotels to groceries to gas,” said Federal Trade Commission Chair Lina M. Khan. “No American should have to worry about paying grossly inflated prices when fleeing a hurricane. In partnership with state enforcers, the FTC will keep fighting to ensure that Americans can get the relief they need without being ripped off by bad actors exploiting a crisis.”
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The government said scammers will insist you pay for services by wire transfer, gift card, payment app, cryptocurrency or in cash. Officials also said not to sign over insurance checks, and always be sure to get written estimates for repairs.
Consumers can report potential fraud online at www.justice.gov/DisasterComplaintForm. Instances of price gouging can be reported by visiting www.justice.gov/atr/report-violations.
