—>Stay Smart and Secure – Navigating Disasters and Scams (Maui on our Minds)

Disasters can strike unexpectedly, leaving individuals and communities vulnerable. While these trying times often bring out the best in people, they can also attract those looking to exploit the situation for personal gain. As we look at the devastation in Maui, remember to be skeptical of scams and seriously examine the organization you plan to fund.

The Anatomy of Scams: Learning from the Past: Scammers are notorious for capitalizing on chaos. History is riddled with instances where fraudsters have taken advantage of disasters, leaving countless victims in their wake.

• Remember the phishing emails following Hurricane Katrina in 2005? According to the US Government’s Accountability Office, the estimated fraudulent loss (that they have found) for Katrina and Rita was around $1.4 Billion.
• What about Haiti and the fraudulent charities that cropped up after the devastating earthquake in 2010? Sincerely the actual losses are still unknown.
• The epic swindle of the $900 million of Covid unemployment money, of which between $90 million and $400 million was subject to fraud, and of course, the PPP program, which we will see in the courts for years to come as an estimated 10% or $80 billion is considered “missing due to fraud”.
• Hurricane Ian in September 2022 is estimated to have caused $100 billion in losses, of which $40 billion was considered uninsured.  The full extent of the fraud loss has yet to be fully disclosed. Still, as the state placed six insurers into receivership in 2022 due to the insolvencies associated with Hurricane Ian, many fraudsters emerged and scammed those insured homeowners who received no assistance.
• These events underscore the importance of verifying the legitimacy of donation avenues and organizations.

Numbers Don’t Lie: The Financial Toll. Data speaks volumes about the financial ramifications of disaster-related scams.

• The Federal Trade Commission revealed that consumers reported a whopping $3.3 billion in fraud losses in 2020, $6.1 billion in 2021, and $8.8 billion in 2023, proving that fraud loss is rising. The increase in part is due to the COVID-19 pandemic, which brought forth an influx of scams, from fake vaccines to phishing scams promising relief funds. However, as technology, social media and foreign scammers continue working to obtain your information, unreported fraud loss surpasses the FTC’s numbers.
• Vigilance, skepticism, and fact-checking is the key to avoiding these pitfalls.

Give but Protecting Yourself: A final word on Maui

• FEMA and the Red Cross are in Maui, helping to support those who have lost everything.  Some of the local community organizations have been vetted:
  • For more information see the Forbes article: https://www.forbes.com/sites/meimeifox/2023/08/15/5-maui-wildfire-relief-efforts-you-can-help-support/?sh=42bbce751bf6

Give Smart -Tips and Tricks

• Verify Before You Give: Do your due diligence, Whether donating to a disaster relief fund or supporting a charity. Research the organization’s credibility and ensure your contributions go to the right place.

• Beware of Unsolicited Communication: Scammers often use emails, phone calls, or text messages to impersonate legitimate entities. If you are unsure about a communication’s authenticity, contact the organization directly through official channels. (Do not click on the link from Social Media, instead find the company’s website)

• Stay Informed: Follow trusted news sources and government agencies for updates on disaster relief efforts and tax changes. Being well-informed will help you avoid falling victim to misinformation.

• Secure Your Financial Information: Monitor your financial accounts and credit reports. If you suspect any suspicious activity, take swift action to protect your assets.

• Report Suspicious Activity: If you encounter a potential scam, report it to the appropriate authorities, such as the Federal Trade Commission or your local law enforcement agency.

Disasters and scams are unfortunate, but you can avoid financial pitfalls with the proper knowledge and precautions. Stay informed, verify information, and be cautious about financial decisions after a disaster. Doing so will equip you to weather the storm and emerge financially secure.

While not a fun topic (we cannot always talk about magical unicorns and accountants), my goal is to help you protect yourself against the evil that feeds on our empathy and concern for our fellow humans!