How to avoid being a victim of post-storm scams

States affected by Hurricane Helene are warning residents to look at for the dangers of scams within the aftermath of the storm, together with value gouging.

Worth gouging occurs when there may be an extreme enhance in costs charged for items and companies, and it usually occurs throughout emergencies or disasters.

North Carolina Legal professional Normal Josh Stein this week mentioned his workplace has seen an uptick of complaints of alleged value gouging associated to gas and grocery costs and resort charges.

In a Wednesday replace, Stein mentioned his workplace had fielded greater than 100 value gouging complaints, he posted on social media platform X on Wednesday, regardless of the state’s anti-price gouging regulation that went into impact with the declaration of a state of emergency.

A spokesperson didn’t return a name from CNBC for additional remark.

“Most shops are bending over backwards to serve their communities,” Stein mentioned in a video accompanying the submit.

“However sadly, there’s at all times going to be just a few of us on the market who make the most of this second and other people’s desperation to make a fast buck,” he mentioned.

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Attorneys normal in different states affected by the storm — together with Florida, Georgia, South Carolina and Tennessee — have issued comparable warnings.  They’re among the many 37 states which have anti-price gouging statutes in place.

Regular value fluctuations aren’t value gouging, South Carolina Legal professional Normal Alan Wilson mentioned in a current announcement.

However when requirements like a case of bottled water go from $5 to $10, or a chainsaw that usually sells for $100 jumps to $500, it is “fairly clearly” value gouging, mentioned Teresa Murray, client watchdog director at U.S. Public Curiosity Analysis Group.

“You recognize it while you see it,” Murray mentioned.

Worth gouging legal guidelines are likely to kick in throughout states of catastrophe or emergency or throughout irregular market disruptions, she mentioned.

“Simply because there is a regulation doesn’t suggest that individuals will not attempt to violate it,” Murray mentioned.

The phrases of established value gouging protections differ from state to state. In the meantime, 13 states don’t have anti-price gouging legal guidelines.

Vp Kamala Harris is pushing for Congress to determine a nationwide ban on value gouging together with her presidential marketing campaign’s financial agenda.

But critics — together with former President Donald Trump — have mentioned anti-price gouging legal guidelines might have unintended penalties for companies and the shoppers they’re supposed to assist, comparable to interfering with the availability of products.

Customers who spot greater than regular costs they think is value gouging ought to first method the enterprise with their issues, in keeping with Murray.

“Be good about it, however name them out,” Murray mentioned.

If they’re unwilling to alter, chances are you’ll report it to the state lawyer normal, she mentioned.

Be mindful you don’t essentially have to purchase the merchandise; an image of the merchandise on the shelf with the value will work, Murray mentioned.

Worth gouging shouldn’t be the one rip-off shoppers want to look at for within the aftermath of Hurricane Helene.

States are additionally warning of different schemes that are likely to crop up throughout catastrophe recoveries.

People could pose as representatives of the Federal Emergency Administration Company, in addition to insurance coverage firms, the Small Enterprise Affiliation or regulation enforcement.

To keep away from these imposter scams, the Georgia Legal professional Normal Chris Carr’s workplace warns to not share private or monetary data to people. As a result of FEMA and SBA companies are free, shoppers needs to be on alert in the event that they’re requested to pay.

Likewise, residents of affected areas must also be cautious of door-to-door gives for residence restore work, in addition to calls for for full up-front or money funds and gives to pay their insurance coverage deductibles.

To keep away from getting scammed, owners ought to discuss to their insurance coverage firms earlier than making repairs and take a look at contractors by asking for references and seeking to see if they’ve any complaints with the Higher Enterprise Bureau.

People who find themselves available in the market to purchase a automotive must also make sure you examine a car’s historical past and the place it got here from earlier than they make the acquisition, to make certain they don’t seem to be shopping for flood-damaged property, Murray defined.

Customers can examine a automotive’s historical past by means of the Nationwide Insurance coverage Crime Bureau’s VINCheck in addition to Carfax’s flood examine.

In the meantime, as folks look to donate cash to assist the restoration, state attorneys normal are additionally warning of the chance of charity scams.

To keep away from sending cash to the fallacious place, donors can confirm a charity by visiting web sites Give.org or CharityNavigator.org. Additionally look ahead to web sites that don’t finish in “.org” or “.com,” petitions for cash over the cellphone and crowdfunding websites that will host unverified funding campaigns.