FTC issues warning for price gouging, donation scams after hurricanes

As Florida residents brace for Hurricane Milton, scammers are looking to take advantage of the natural disaster by engaging in fraud and price gouging.

The Federal Trade Commission along with the Department of Justice and the Consumer Financial Protection Bureau issued a warning to consumers today about natural disaster scams.

“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 Lina M. Khan, FTC chair.

“No American should have to worry about being ripped off when fleeing a hurricane,” said Khan.

Disaster scams include fraudulent donation solicitations, rebuilding investment opportunities and price gouging.

“Price gouging during a natural disaster is just plain wrong, and excessive price increases can be unfair under the law,” said Rohit Chopra, CFPB director. “The CFPB will be on the lookout for financial companies that take advantage of natural disasters to rip people off.”

Consumers who have encountered a scam may report it to the FTC at ReportFraud.ftc.gov.

Examples of natural disaster 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

Tips to avoid scams and frauds

• Only scammers will insist you pay for services by wire transfer, gift card, payment app, cryptocurrency or in cash
• Avoid anyone who promises they can help you qualify for relief from the Federal Emergency Management Agency (FEMA) for a fee. That’s a scam. FEMA will never require you to pay a fee to get disaster relief.
• Never sign your insurance check over to someone else.
• Be sure to research contractors and get estimates from more than one before signing a contract for work. Get a written contract for repairs and read it carefully before signing it.