As if two deadly hurricanes in a month haven’t been enough to contend with, residents in Florida and other Southeastern states are also being urged to watch out for storm fraud and price gouging. That’s the message from authorities including the Federal Communications Commission (FCC) and state attorneys general, who have all issued warnings to consumers about a potential surge in scams and unfair trade practices resulting from hurricanes Helene and Milton.
Stories of alleged price gouging on flights were already circulating as Floridians prepared to escape the path of the storm on Wednesday, although airlines swiftly hit back against accusations, as they had following Hurricane Irma in 2017.
In the aftermath of a hurricane, consumers should be alert to businesses potentially overcharging for even the most basic goods and services, including bottled water, gas and accommodation, officials said.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
South Carolina Attorney General Alan Wilson explained: “We can expect normal price increases, and those are not considered price gouging under our law. But we may see businesses and individuals looking to unfairly take advantage of the situation.” Over in North Carolina, Attorney General Josh Stein said: “Unfortunately, there’s always going to be a few folks out there who take advantage of this moment and people’s desperation to make a quick buck.”
As well as unscrupulous, albeit genuine, businesses, homeowners may also encounter fraudsters posing as legitimate traders. The FCC warns: “Scammers use phone, text, mail, email and even go door to door to target residents of affected areas following hurricanes and damaging storms.”
Home repair, tree service and water testing and treatment scams are among the most prevalent in the wake of a natural disaster, according to the Florida Attorney General’s Office, while insurance fraud and identity theft are also a risk. Scammers may even pose as representative of charities asking for donations for disaster relief.
Laws around price gouging, and what constitutes price gouging, are typically set state by state (Democratic presidential nominee Kamala Harris has called for a federal ban on corporate price gouging) and are often triggered by states of emergency. In South Carolina, for example, state law stipulates it's gouging to rent or sell something at "an unconscionable price," which can mean the price "grossly exceeds the average price at which the same" item or dwelling "was readily obtainable in the trade area during the 30 days immediately before a declaration of a state of emergency."
How to avoid storm fraud
Scammers know that people are at their most vulnerable when in distress, but following a few simple rules should help homeowners avoid falling victim to fraud. The FTC has also published practical advice on how to avoid scams before and after a weather emergency.
Unsolicited approaches from traders at the door or on the phone are an immediate red flag. Never give insurance policy numbers, coverage details or other personal information out to a third party you haven’t entered into a contract with. Use the Better Business Bureau to check traders’ credentials and never pay the full amount of a repair upfront. Only donate to trusted, well-known charities, and be especially wary of crowd-funding requests on social media.
Anyone who encounters a scam or price gouging after a hurricane or other natural disaster should report it to their state attorney general or the Federal Trade Commission (FTC) at ReportFraud.ftc.gov. In Florida, you can visit MyFloridaLegal.com or call 1-866-966-7226, a price gouging hotline open for the hurricane.
FTC Chair Lina M. Khan said: “No American should have to worry about being ripped off … In partnership with state enforcers, the FTC will keep fighting to ensure that Americans can get the relief they need without being preyed on by bad actors exploiting a crisis.”
Related content
-
Why Prepaying Your Retirement Dreams Might Be a Financial Game ChangerHe bought his retirement home more than a decade before he plans to retire. Was it the right move?
-
My $1.2 million vacation home has a $360K mortgage. I don't need my upcoming $45K RMD. Should I use it to pay down the mortgage?We asked wealth planners for advice.
-
5 Ways to Teach Your Kids About Giving Back, From a Financial PlannerTeaching kids generosity goes beyond simple rules and can involve fun, practical strategies, such as letting them lead giving, volunteering together and more.
-
I'm a Financial Planner: Here's How You Can Use AI to Improve Your FinancesApps can help with budgeting, saving and investing, financial coaching and debt management. But providing your personal information can also raise your risks.
-
How to Get HBO Max for $2.99 with Hulu This Black FridayTake advantage of Hulu’s holiday pricing and stream HBO Max hits for only $2.99 a month.
-
Hulu’s Black Friday Deal Gets You Starz for Only $2.99Get premium entertainment for less with Hulu’s limited-time Black Friday STARZ deal.
-
The Best Christmas Movies on Paramount+ (and How to Watch Them for Less)Settle in this holiday season with classic Christmas movies on Paramount+ and save with the service’s limited-time Black Friday deal.
-
5 Simple Fixes to Save on Heat Bills This WinterWith fuel prices expected to rise 10% or more this winter, making your home more energy efficient will really pay off.
-
Why It's Worth Booking a Winter VacationTravel Smart In the early months of the year, travel demand dips — and so do prices.
-
When Checkout Charity Gets Uncomfortable — and Maybe Even IllegalCashiers asking customers to 'round up' their total for charity can cross an ethical line if there's no disclosure about the benefiting organization.
