Member Alert: Hurricane Helene Scams

Unfortunately, scammers tend to prey on victims during a natural disaster. Scammers are already capitalizing on opportunities impacting those affected by Hurricane Helene. This article includes several scams you should be aware of to protect yourself and your money, including price gouging, home repair fraud, bogus charities, and imposter scams.

PRICE GOUGING

Snippet Courtesy of South Carolina Attorney General - South Carolina Attorney General Alan Wilson announced that the state’s law against price gouging is now in effect since Gov. Henry McMaster declared a state of emergency because of Hurricane Helene.

“With the possibility that Hurricane Helene could affect South Carolina after making landfall in Florida, we all need to be prepared. We can expect normal price increases, and those are not considered price gouging under our law. But we may see businesses and individuals looking to unfairly take advantage of the situation through price gouging of food, gasoline, lodging, and other commodities as defined by the statute. By our law, that’s a criminal violation and an unfair trade practice,” Wilson said.

The price gouging law (SC §39-5-145) is a general prohibition of unconscionable prices during times of disaster. It is in effect until the state of emergency expires or is terminated. Price gougers can be charged for excessive pricing, a misdemeanor offense punishable by a $1,000 fine and/or 30 days in jail.

Normal fluctuations in price are to be expected and are not price gouging, but if you feel like you are the victim of price gouging there are certain steps you can take to help our office investigate. Please do the following:

1. Note the time, place, address, and name of the gas station or business.
2. Note the price you paid.
3. Note any prices nearby and get the same information on those stations or businesses.
4. Take pictures that identify the business, along with the price.
5. Provide your name and contact information.

Our office will need that information to conduct a thorough investigation. Please email any examples and documentation to [email protected]. You can also give us that information on our website at https://www.scag.gov/price-gouging/. If you don’t have access to email or our website, you may call 803-737-3953 and leave a message if you have witnessed a likely violation. Please include the details we need to be able to investigate.

HOME REPAIR FRAUD

Snippet Courtesy of Georgia Attorney General - When bad storms cause widespread damage to homes, criminals may try to exploit the disaster. These scam artists, often referred to as “storm chasers,” may ask homeowners for up-front payments for home repair service and then disappear without ever doing the work. In other cases, scammers may charge exorbitant prices for tree removal, charge you for unnecessary repairs or do substandard work. Sometimes scammers offer to cover the homeowner’s insurance deductible and persuade them to give fake reports to the insurance company, potentially implicating the homeowner in a case of insurance fraud.

The following tips will help you avoid scams and other fraud in the aftermath of a storm:

• Steer clear of any contractor who asks for full payment up-front, only accepts payment in cash, or refuses to provide you with a written contract.
• Avoid door-to-door offers for home repair work. Instead, ask friends and neighbors for referrals.
• Be skeptical of any contractor that offers to pay your insurance deductible or offers other no-cost incentives, as these can be signs of a scam. Always talk to your insurance company before committing to any storm-related repairs or inspections.
• Ask contractors for references and check them out.
• Check with the Better Business Bureau (BBB) to see if there are any complaints against the business.
• Ensure that the contractor has the required licensing and/or affiliation.
• Legitimate contractors should be able to provide the following:
  • Business license
  • General liability insurance
  • Workers compensation insurance
  • Written manufacturer warranties
  • Written labor warranties

BOGUS CHARITIES

Snippet Courtesy of Georgia Attorney General - Seeing or hearing about the devastation caused by a natural disaster evokes our sympathies and our desire to help those affected. Unfortunately, scammers realize this and do not hesitate to take advantage of people’s heightened emotions. They may pose as reputable charities soliciting donations and target consumers through unsolicited emails or telemarketing calls or by knocking on their doors. They often create legitimate-looking websites that have names similar to actual charities, sometimes even using the actual logo of a reputable relief organization. 

To make sure you are donating to a legitimate charity, the Consumer Protection Division recommends the following:

• Don’t respond to unsolicited emails and avoid clicking on any links they contain. Only open attachments from senders you know and trust.
• Don’t give out money over the phone unless you have initiated the call and are confident that the charity is legitimate.
• You can research a charity by going to www.give.org or www.charitynavigator.org.
• Look up the actual website of the charity you want to donate to rather than trusting a link from an email or pop-up ad.
• Note that legitimate charity websites typically end in “.org,” not “.com”
• Be cautious of crowdfunding sites. Since some crowdfunding sites do little to vet people who post for assistance after a disaster, be extra vigilant when donating this way. The Better Business Bureau warns that some individuals posting for donations may not have any official connection to a charitable organization or could be using names and photos of victims without the permission of their families.

IMPOSTER SCAMS

Snippet Courtesy of FEMA - Protect your identity and stay informed by doing these easy things:

• DHS, FEMA, SBA and other federal agencies will never charge you for disaster assistance.
• Always ask to see I.D. FEMA personnel will always have an official identification badge.
• Do not offer any personal information unless you are speaking with a verified FEMA representative.
• Stay tuned to trusted local media for updates from your local officials on disaster fraud and scams.
• Check with local law enforcement to ensure your identity is protected.