Bad Actors Take Advantage of Bad Times


By: Dorothy Riggs, CFE

Catastrophic events like hurricanes Harvey and Irma tend to primarily bring out the best elements of humanity such as love, charity and compassion. However, we must sadly acknowledge that calamity also brings out the worst elements of society. The lure of financial gain leads some people to take advantage of others through the implementation of criminality and deceptive schemes.  Avoid being taken advantage of by being on the lookout for the following:

Water-logged Cars

According to Consumer Reports approximately 500,000 automobiles were damaged throughout Texas during hurricane Harvey. Several more vehicles were destroyed by the effects of Irma. Most of these car owners will be in the market to replace damaged cars.  It would be even more devastating if hurricane victims or any other used car buyer purchased one of the flooded cars.  Here are some things you should know before you buy:

  • ·         Sellers often advertise flood-damaged autos as regular used cars. They omit telling potential buyers that the vehicle was flooded.
  • ·         Flooded car damage isn’t always visible to untrained eyes. Have used cars inspected by a reputable mechanic before you purchase.


Looting

On September 11, 2017 DailyMail.com reported that 32 looters had been arrested in Florida.  Looters plunder and pillage goods and merchandise from retailers and private homes. The best thing you can do to mitigate loss to looters is board up windows and doors as securely as possible.  Of course document your property and insure all of your valuables.

Construction/Home Repair Scams

As storm victims seek to repair damaged homes and businesses, they are eager to get repairs done quickly and at the most reasonable price.  Eagerness often leads them to fall for silver-tongued fast-talking individuals posing as reputable contractors who promise to get the job done only to leave them high and dry.  Here are some best practices when dealing with contractors:

  • ·         Check Better Business Bureau reports and reviews to make sure the contractor is legitimate and reliable.
  • ·         Ask for references and physically check out local jobs completed by the contractor if possible.
  • ·         Make sure the contractor is bonded and licensed.
  • ·         Never pay all of the money up front before the work has been started and/or completed.
  • ·         Get a contract in writing specifying work to be done, price, terms of incremental payment and time of completion.

Fake Charity Organizations

Like looters, shady vehicle sellers and shoddy construction workers fake charities come out the woodwork when calamity strikes.  Often times people give thinking that their donations will help the downtrodden.  However, charlatans use fraudulently collected donations to fund their own lavish lifestyles. True victims never receive a dime.  Here’s what you should do before you give:
  • ·         Research the charity to verify its legitimacy.
  • ·         Consider donating to widely known organizations such as the Red Cross.  They usually have local offices in most communities.



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