Why It Matters

Millions of people are affected by disasters such as floods, hurricanes and wildfires each year, and the billions of dollars in federal assistance distributed quickly after disasters also attract scammers, according to a Government Accountability Office report released May 19.

Scams involve the use of deception or manipulation intended to achieve financial gain, and they are a persistent threat alongside the physical devastation of hurricanes, floods and wildfires. Scams have been around for many years, have evolved with technology and are a growing risk to consumers in the U.S. and around the world. The prevalence of disaster assistance scams is unknown, due in part to underreporting.

The Big Picture

Recent surveys, including one by the U.S. Census Bureau, suggest that many individuals encounter scams during disaster recovery. Federal agencies collect complaint data that include allegations of disaster assistance scams, but data limitations prevent accurate estimates of how often disaster assistance scams occur and how much money is lost.

Many disaster assistance scams go unreported to federal agencies. Victims may not report scams because of shame or embarrassment, a belief that reporting will not help or a lack of awareness about how to report the crime.

Factors hindering enforcement actions against scammers include underreporting, time and resource constraints, case prioritization and the sophistication of some international scam operations.

Federal agencies use consumer education to raise awareness and help prevent individuals from becoming victims of disaster assistance scams. Information booths at disaster recovery centers display signs with tips about identifying, reporting and avoiding scams. Online information, including press releases and emergency app push notifications, also helps raise awareness about disaster assistance scams.

The Bottom Line

The GAO report is structured as a Q&A examining disaster assistance scams and federal and state efforts to mitigate them. GAO found that the prevalence and financial cost of disaster assistance scams cannot be reliably estimated because of limitations in complaint data and underreporting, leaving consumer education and awareness as key tools for preventing scams.

Spot something wrong? Report an issue with this article