Watch Out for Texas Flood Relief Scams

As the death toll from flooding in Central Texas continues to rise, scammers already are trying to take advantage of this natural disaster.

Texas Attorney General Ken Paxton and U.S. Attorney’s Office for the Western District of Texas issued warnings to be on alert for fraudsters trying to profit off the flooding. “There are no words for how wrong it is that morally bankrupt people are trying to take advantage of Texans by using this tragedy to scam them," Paxton said in a press release.

However, it's not just Texans who are at risk. Attorneys General in other states also are urging people to be on the lookout for flood relief donation scams.

Whenever natural disasters occur, scammers will use a variety of tactics to prey on the generosity of people who want to help victims and the victims themselves. It's important to be aware of these tactics to avoid losing money to these schemes.

Tactics scammers use

Be on the lookout for these common scams that pop up after natural disasters, including the Texas floods.

Fake charities: Scammers create fake charities after disasters to prey on people’s generosity. These fake charities often have names that are similar to legitimate organizations. Scammers also take advantage of social media and crowdfunding websites such as GoFundMe to ask for donations. For example, fraudsters created fake Venmo accounts using names similar to a volunteer fire department in Kerr County, Texas, according to American Banker.

Contractor fraud: The Texas Office of the Attorney General is warning flood victims to be wary of anyone offering to help them rebuild because contractor scams are common after disasters. Bad actors might claim that they can make immediate repairs for an upfront payment, but they’ll take the money and run.

Government imposter scams: Scammers pose as government representatives and offer to provide inspections and help disaster victims fill out grant applications for a fee. However, if you’re being asked to pay for government assistance, it’s a scam. 

‍Mortgage relief scams: Be wary of anyone offering relief with mortgage payments other than your lender. Scammers might claim to negotiate on your behalf for a fee to avoid foreclosure. 

IRS imposter scams: Scammers claim to be working with the IRS and offer to help file casualty loss claims and get tax refunds. The IRS won’t contact you out of the blue to offer assistance. If you need help,  call the IRS toll-free disaster assistance line at 866-562-5227.

How to avoid natural disaster scams

Take these steps to avoid giving your money or personal information to a scammer after a natural disaster.

Don't rush. Scammers will try to tug at your heartstrings to get you to make donations without thinking. So beware of emails, text messages or social media posts with sentimental pleas for money. The Carefull ScamCheck tool can help you determine whether a message you've received is likely a scam.

Research before you give. Take the time to find legitimate organizations that are providing Texas flood relief.  Charity Navigator, which provides reviews and ratings of charities, has a list of trustworthy organizations responding to the flooding. The Texas Department of Justice also has a list of charitable organizations that are authorized to operate in the state. See How to Check Out a Charity Before You Give to learn more. 

Be wary of crowdfunding requests. Don’t respond to pleas on social media or even text messages from friends to give through crowdfunding sites without checking first to see if those fundraisers are legitimate. For example, GoFundMe has a list of verified fundraisers for Texas flood relief.

Don’t provide your personal information to anyone who contacts you offering disaster assistance. Even if they claim to be with a government agency, utility company or an insurance company, they could be scammers. Contact the company or agency directly for support.

Don’t pay for government assistance. FEMA, federal or state government workers will not ask for or accept payment. Don’t believe anyone who is offering a disaster grant in return for a payment. FEMA.gov has a list of resources for those impacted by the flooding.

Don’t feel pressured to make immediate decisions about repairs. The National Insurance Crime Bureau recommends contacting your homeowners insurance company before making any decisions or signing contracts for repairs. Get repair estimates from multiple contractors, get agreements in writing and don’t pay the full amount upfront.

Don’t pay anyone to negotiate with your mortgage provider if you’re having trouble making payments. Contact your lender, which should be willing to discuss hardship options to help you avoid foreclosure. Or contact a housing counselor approved by the Department of Housing and Urban Development who can provide free or low-cost assistance.

If you or someone you know is a victim of a disaster scam or fraud, file a report with local law enforcement. You also can file a report with the National Center for Disaster Fraud. To learn more about what other steps to take, see What to Do If You’ve Been Scammed.

‍