FTC Warns Consumers: Charity and Home Repair Scams May Appear After a Disaster
As Hurricane Isaac strikes the Gulf Coast, the Federal Trade Commission reminds consumers that scams often follow disasters . The nation's consumer protection agency warns people about urgent appeals for charitable donations, and cautions residents in stricken areas about fraudulent home repair offers.
If you are asked to make a charitable donation to help people in disaster-affected areas, consider these tips to giving wisely:
- Donate to charities you know and trust. Be alert for charities that seem to have sprung up overnight.
- Ask if the caller is a paid fundraiser, who they work for, and what percentage of your donation goes to the charity and to the fundraiser. If you don't get a clear answer -- or if you don't like the answer you get -- consider donating to a different organization.
- Do not give out personal or financial information - including your credit card or bank account number - unless you know the charity is reputable.
- Never send cash: you can't be sure the organization will receive your donation, and you won't have a record for tax purposes.
- Check out a charity before you donate. Contact the Better Business Bureau's Wise Giving Alliance at www.give.org.
Fraudsters target disaster-affected areas, hoping to cash in on property owners' insurance settlements and financial relief from the federal government. Home and business owners who need to hire a contractor should:
- Ask for copies of the contractor's general liability and worker's compensation insurance.
- Check the contractor's identification and references.
- Avoid paying more than the minimum in advance.
- Deal with reputable people in your community.
- Call local law enforcement and the Better Business Bureau if you suspect a con.
For more information, see Disaster Recovery , Charity Checklist , and Charitable Donations: Give or Take? .
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC's online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC's website provides free information on a variety of consumer topics . Like the FTC on Facebook , follow us on Twitter , and subscribe to press releases for the latest FTC news and resources.