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.
Sign up for Kiplinger’s Free E-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
-
Is Delta's New AI Pricing Bad News for Your Wallet?Delta is using AI to "personalize" the price you pay for airfare. Here's what that could mean for your next trip.
-
The 10 Places Where Social Security Covers the Most (and Least) Of Your ExpensesOn average, Social Security covers 30.11% of retirees’ spending. Fortunately, there are places where those dollars will stretch further and cover more of your spending.
-
Is Delta's New AI Pricing Bad News for Your Wallet?
Delta is using AI to "personalize" the price you pay for airfare. Here's what that could mean for your next trip.
-
Are Buffett and Berkshire About to Bail on Kraft Heinz Stock?Warren Buffett and Berkshire Hathaway own a lot of Kraft Heinz stock, so what happens when they decide to sell KHC?
-
The Five Best Side Hustles for RetireesMore older people are working in retirement to boost income and stave off boredom. These gigs and hustles make the most sense for the golden years crowd.
-
TSA’s New Family Lanes Aim to Take the Stress Out of Summer TravelThe “Families on the Fly” campaign introduces family-friendly security lanes and discounted TSA PreCheck fees — just in time for peak travel season.
-
From Piggy Banks to Portfolios: A Financial Planner's Guide to Talking to Your Kids About Money at Every AgeFrom toddlers to young adults, all kids can benefit from open conversations with their parents about spending and saving. Here's what to talk about — and when.
-
Retirement in the Age of Cyber Scams: How To Protect Your Next ChapterRetirement is meant to be a time of relaxation and living life on your terms. But for many retirees, this dream is under threat from a growing epidemic — cyber scams.
-
Heat Wave in Europe: What Every Traveler Needs to KnowRecord-breaking summer temperatures, wildfires, and travel disruptions — they’re reshaping summer 2025 trips. Here’s how to stay safe, prepared and savvy.
-
You'll Kick Yourself in the Fall if You Don't Make This Savings Move NowInflation will likely prevent the Fed from cutting rates until the fall. However, does a long-term CD provide enough of a return to outpace climbing prices?
