How do you protect yourself from fraud after a disaster?

Disasters create a narrow window where people are stressed, distracted, and need help fast, and fraudsters know it. After Hurricane Katrina, a federal fraud task force screened about 39,000 tips and complaints (U.S. Department of Justice). That pattern repeats after nearly every major disaster, from impersonation scams to storm-chasing contractors who disappear after taking a deposit.

Knowing the pattern in advance is what keeps you from being caught in it. Someone knocking on your door offering to fix your roof isn’t automatically a scam, but it’s exactly the scenario where you need to slow down and check, not sign.

• They knocked on your door unsolicited. Legitimate, established contractors rarely need to canvass neighborhoods after a disaster.
• They’re from out of state and just arrived. Out-of-state plates and a sudden local presence right after a disaster is a well-documented storm chaser pattern.
• They’re asking for a large deposit upfront. A payment schedule tied to project milestones is standard. A demand for most of the money before work starts is not.
• They can’t show you a license or insurance certificate. Ask directly, and verify independently if you can, don’t just take their word.
• They’re pressuring you to sign something right now. High-pressure tactics that push for an immediate decision are a red flag, whether it’s a contract, an insurance document, or a payment request.
• They’re offering a price that seems too good. Unusually low bids often mean cut corners, future cost escalations, or a contractor who never intends to finish the job.
• Impersonation of officials. Federal workers don’t solicit or accept money. If someone claims to be a government official, ask for an official, laminated, government-issued photo ID. A jacket with a logo isn’t proof.
• Requests for personal or financial information. Guard your Social Security number and bank details. Don’t hand them to anyone you haven’t independently verified.

Some contractors will ask you to sign what’s called an Assignment of Benefits, a document that transfers your right to negotiate and receive payment from your insurance company directly to the contractor. This isn’t automatically fraudulent, but it’s been widely misused, and once you’ve signed one, you may lose meaningful control over your own claim.

Do not sign anything you don’t fully understand, especially anything related to your insurance claim, on the spot. Take it home, read it fully, and if you’re unsure what you’re agreeing to, don’t sign it that day. A legitimate contractor will not disappear because you asked for a night to think it over.

• Stop all further payment or communication with the suspected fraudulent party immediately.
• Report it to the National Center for Disaster Fraud and your state’s consumer protection office as soon as possible.
• Keep every piece of documentation you have: contracts, texts, emails, receipts, and notes on in-person conversations.
• Contact your insurance company directly if the fraud involves your claim, especially if you signed an Assignment of Benefits you now regret.
• File a report with local law enforcement, since this creates an official record even if recovery of funds isn’t guaranteed.