NEW YORK — The destruction caused by Hurricanes Milton and Helene has led to a significant rise in individuals looking for disaster relief, but this situation also brings the risk of fraudulent activities.
Various government entities, including the Federal Trade Commission, the Department of Justice, and the Consumer Financial Protection Bureau, are urging individuals to remain cautious regarding identity theft, price gouging, and other scams targeting disaster victims. Small business proprietors are also encouraged to stay vigilant, as scammers can operate both online and in-person, making it essential for them to recognize potential threats.
According to Jennifer Butler, a partner in disaster recovery at the global advisory firm EisnerAmper, there has been an increase in cyberattacks during disaster situations. “Small businesses should really pay attention to that, really be aware of scams, phishing attempts, or potential cyberattacks on their systems,” she explained. Butler emphasized that this is a critical time for illicit actors to target smaller businesses, which may be more vulnerable during the recovery phase.
In light of the heightened risk, small business owners are advised to thoroughly verify the identities of individuals they engage with, especially as they deal with various employees and contractors after a disaster. “Always ask for ID and documentation,” Butler recommended. “No one should be asking for payment upfront, particularly anyone claiming to be from a government entity such as the Small Business Administration.” She further cautioned that business owners should not pay anyone who asserts they are representing the federal government.
In Florida, local authorities have issued warnings about individuals masquerading as officials from the Federal Emergency Management Agency, attempting to collect personal financial details from victims of the hurricane.
If business owners believe they might be victims of scams, they are advised to report any suspicious activities or potential fraudulent claims to FEMA by calling 1-866-720-5721.
