Disaster Scams, Price Gouging & Contractor Fraud

Scammers often target disaster survivors—especially older adults and hard-hit communities—to steal personal information or money. Staying alert, cautious, and taking your time with decisions can help you avoid these scams.

Here are some examples of disaster-related scams:

•  FEMA Cash Payment Scam: Scammers may pose as FEMA employees and request personal information, claiming they will give cash payments. FEMA does not issue cash payments; legitimate assistance is provided via check or direct deposit.
• Contractor Fraud: Fake contractors will go door-to-door and offer to repair your home if you pay them upfront. They will take your money and disappear. You should be cautious of any contractor who shows up unannounced. You should take steps to verify they work for a legitimate business.
• Crowdfunding/Charity Scams: People may lie about being disaster victims on websites and social media to get people to donate. There have also been cases of people making up fake charities. You should be careful about donating to someone you do not know. To check if a charity or non-profit is legitimate, visit https://www.irs.gov/charities-non-profits/tax-exempt-organization-search. 
• Identity Theft: Scammers may attempt to steal your personal information during or after a disaster. Be careful of whom you give your information to. Ask for a person’s credentials, such as their employee ID card from FEMA or another agency, to verify who they are and what organization they represent before giving out your information. Real helpers will be glad to give you this information and the time to make sure you are safe. If you’re not sure, ask someone you trust for help.

Scammers often target disaster survivors. Remain aware and protect your credit card information, personal information, and property. Reporting scams help protect you and your neighbors.

• For FEMA-related scams:                                                               
  
  • call FEMA’s fraud hotline: 1-866-223-0814.
  • call the Kentucky Attorney General’s Natural Disaster Hotline: 502-696-5485; or report online here.
• For other scams, report to the Kentucky Attorney General’s Office at 1-888-432-9257. 

Price gouging means charging a much higher price than normal for essential goods or services. In Kentucky, the law that prohibits price gouging goes into effect when the Governor of Kentucky says there is a state of emergency.  The state of emergency can be caused by natural disasters or other things that threaten public safety.

• Food and water
• Ice
• Gas and other fuel
• Batteries, flashlights, and generators
• Cleaning supplies
• Medicine and basic health items
• Baby items like formula, diapers, and wipes

Services like:

• Home repairs like roofing, plumbing, or electrical work
• Tree removal and cleanup
• Car towing and repair
• Hotel rooms or places to stay
• Rides or transportation

Building materials like wood, tarps, and tools are also covered.

No.  It only applies to the geographic area which is covered by the declared emergency.

Report suspected price gouging to the Kentucky Attorney General’s Office at 1-888-432-9257. 

• Ask for a written contract (on paper) before the work begins. Make sure the contract sets out what work will be done, when it will be completed, and how much it will cost. Ask for time to review the contract and then sign it later. Don’t pay for more than 50% of the work upfront.
• Be careful who you give your debit and credit card information to. It can be difficult to get money put back into your bank account after fraud. If you believe you have been a victim of fraud and have lost money through your debit card, credit card, or checking account, contact your bank or credit card company immediately. 
• Research the contractors you are considering. Check them out at Better Business Bureau. Read other online reviews to learn about the contractor’s history. Ask your neighbors for the names of local contractors they know do good work and are honest. 
• Be cautious of a contractor who asks you to sign a release to give up your insurance claims or who tells you, “I’ll take care of it” or “You don’t need to file a claim.” When in doubt – research and investigate further. 
• Consult your insurance adjuster for contractor recommendations.
• Request proof of contractor insurance.

• In Kentucky, contractors who work on HVAC, plumbing, and electrical projects must be licensed. verify their license before you have them do the work.

  Use this link to check if they are licensed in Kentucky.