Flood victims warned of scams

The Tribune-Star

July 16, 2008 10:51 pm

— The Federal Emergency Management Agency and the Indiana Department of Homeland Security are warning Indiana residents affected by the recent severe storms and flooding to be on the lookout for scam artists trying to cheat them.

“Fraud really does disturb us,” said Mel Jenkins, a FEMA field public information officer. “In every disaster, good and bad happens. We’d like the least amount of bad.”

A common scam occurs when a person poses as a FEMA inspector or loss verifier of damaged property. If an inspector requests a fee, that inspector is a fake, or scam artist. FEMA inspectors never request a fee for anything they do, according to a FEMA news release.

Another scam is attempted identity theft. People living in the disaster area may receive a letter, a phone call, or an e-mail from someone posing as a state or federal official. The imposter claims he is holding a disaster assistance grant or loan for the applicant and all he needs is the person’s bank account number, Social Security number or other personal information to complete the processing.

“Don’t be fooled by come-ons like these,” warns Mike Smith, federal coordinating officer in charge of FEMA operations in Indiana. “Neither FEMA nor the state will ever call you asking for that information — or for a fee of any kind.”

People in the process of rebuilding their homes after a disaster also are cautioned to watch out for unscrupulous contractors.

People should be on the alert for door-to-door solicitors who hand out flyers and ask for large cash deposits or advance payment in full. They should insist on seeing identification and be especially alert for phone solicitors who ask for banking information, Social Security numbers or other personal information. This information should not be given out.

Individuals affected by the recent disaster also should consider the following:

n Ask contractors for proof of insurance. Be sure the contractor has both disability and workers’ compensation insurance. If a contractor is uninsured, you may be liable for accidents on your property.

n Ask for a written estimate, and check to make sure it includes everything you expect the contractor to do, as well as taxes and any other fees.

n Ask for a written contract, and never sign a blank contract. The contract should include all tasks to be performed, all associated costs and payment schedule, and should specify who is responsible for applying and paying for necessary permits and licenses. Also ask for a written guarantee.

n Legitimate contractors and other service providers normally do not require more than one-third as a down payment. Don’t give anyone an advance payment in cash. Pay by check, and make sure your payment schedule is clearly spelled out in your contract.

Jenkins urges those who suspect fraud to immediately contact local police. They also should call the disaster fraud hotline at 1-866-720-5721.

People also can report anything suspicious by calling the Indiana Attorney General’s Hotline at 1-800-382-5516.