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Accounting Services, Inc.

SuperStorm Sandy Fraud Risk

People affected by SuperStorm Sandy

Learn from past frauds associated with Hurricane Katrina and other similar catastrophic events. Here are some fraud examples and indicators (motivations) that may be present during the aftermath of SuperStorm Sandy:

  • Fraudsters know you are desperate. This makes you vulnerable due to your immediate need created by the disaster.
  • The Fraudster maybe hurt by the distressed economy and sees an opportunity.
  • The Fraudster knows people in the United States are very charitable. Make sure you avoid bogus charitable websites; no cash gifts (use credit card or checks). Watch out for phony or fictitious charities that have similar names to well established and known charities. Make sure the funds you are contributing are going directly to those affected.
  • There will be lots of value (money) available.  Insurance and FEMA (government) aide are subject to potential false claims. Make sure you do not succumb to greed and file false or overstated claims.
  • Watch out for contractors who will overstate the repair pricing (the rip off repairman).  Watch for contractors that take your money and then vanish (makes sure they are licensed and bonded).
  • Use reputable towing/hauling when dealing with your damaged vehicles and boats. Salvage Company may falsely disclose vehicles and boats that were damaged in the storm. Keep track of your vehicle and boat identification numbers and inspect physical damage with reputable adjusters. Do not succumb to filing a false or inflated claim.
  • Vendor fraud due to claims of shortages, and the overwhelming demand that drives price up. Look for price gouging.
  • Watch out for Looting and theft by securing you location.
  • Beware of post disaster scams.
  • What other potential scams can you think of that give these unscrupulous people access to your value?

My heart and prayers go out to all of those affected. We, the people of the United States will continue to rise from tragic events. It’s what we do!

You can learn more about the different types of fraud in my soon to be released book, Detecting Fraud in Organization: Tools, Techniques and Resources.

Preorder today at Barnes and Noble or Amazon.

 

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