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3 types of fraud after a natural disaster

On Behalf of | Mar 6, 2021 | White Collar Crimes |

After a natural disaster tears through an area, the destruction can be massive. With that said, destroyed buildings and bodily injuries are not the only damages that occur.

When there is a hurricane or flood, it often leaves people vulnerable or desperate, and as a result, fraud can be especially rampant during this time.

1. Contractor fraud

Cleanup and repair services are often one of the most common forms of fraudulent activity following a major storm. While there are legitimate and trustworthy contractors, there are also those who are not. Sometimes, a salesperson is simply looking to take advantage of a homeowner’s money without providing the work he or she promises.

2. Insurance fraud

When it comes to life after a natural disaster, insurance plays a major role. Unsurprisingly, this is another area where law enforcement sees many cases of fraud. With insurance claims, fraudulent behavior can work two ways. Sometimes, individuals or organizations choose to inflate or entirely fabricate insurance claims to receive compensation benefits. Other times, insurance fraud occurs when someone calls you pretending to be a government official or your insurer for the purpose of stealing your personal or financial information.

3. Charity fraud

Individuals are not the only ones who can commit white collar crimes. Indeed, charity fraud is also common. This occurs when several people work together to pose as a charitable organization for purposes of fraudulently collecting financial contributions from those with philanthropic intentions.

When disaster strikes, the world can be chaotic. While injuries and fallen buildings may be the most obvious types of damage, fraud can lead to another level of difficulty.