Severe weather, including tornados, thunderstorms, and wildfires, has caused widespread damage across multiple states, leaving hundreds of homes, schools, and businesses destroyed or severely damaged.
In response, the National Insurance Crime Bureau (NICB) is cautioning residents and business owners about potential fraud schemes targeting disaster-stricken areas.
The NICB said it is working with local, state and federal law enforcement agencies, as well as insurance companies, to assist in recovery efforts and prevent fraudulent activity. As first responders complete their emergency work, NICB agents will be deployed to monitor for fraud as rebuilding begins.
Charlie Worsham, NICB’s regional director in the Southeast region, said spring weather systems can result in catastrophic weather events like the tornados, thunderstorms, and wildfires seen across Arkansas, Missouri, Ohio, the Tennessee Valleys, South Carolina, and Oklahoma. He warned that some contractors may promise help, ask for the assignment of benefits, and after being paid, disappear without completing the work.
Niambi Tillman, regional director at NICB, emphasized the importance of identifying fraud risks, stating that knowing the warning signs of untrustworthy contractors can protect residents and help deter crime.
Fraudulent schemes often involve individuals or companies offering services such as debris and tree removal, home construction, and medical assistance. NICB advised residents to verify credentials and consult their insurance providers before hiring any contractor.
Common red flags include high-pressure sales tactics through door-to-door solicitation, phone calls, or online messaging. Contractors who push for immediate contract signing, particularly with blank spaces in documents, should be approached with caution. Other warning signs include upfront payment demands and Assignment of Benefits agreements, which transfer insurance claim rights to contractors.
NICB also recommended that residents contact their insurance provider immediately to report property damage, review all claim-related documents, and consult their insurer before proceeding with repairs. It also warned against making full payments upfront or signing a completion certificate before confirming the work is finished.
If fraud is suspected, residents should report it to law enforcement and their insurance provider. They should also be cautious about sharing personal information over the phone, particularly with unsolicited callers, the agency advised.
Similar contractor fraud concerns have surfaced in other states experiencing severe weather events. Law enforcement and consumer protection agencies continue to monitor recovery efforts to prevent fraud, NICB said.
