Experts warn those with severe weather damages on how to avoid fraud
AUSTIN (KXAN) — Weekend storms moving through North Texas spawned seven tornadoes on Sunday, which caused extensive damage in several communities west of Fort Worth — that’s all according to the National Weather Service.
This comes weeks after confirmation of an EF0 tornado that touched down in Central Texas in Milam County.
As people hope to begin the clean-up process quickly, experts are warning neighbors about some helpers potentially moving in and ripping off victims.
David J. Glawe, president and CEO of the National Insurance Crime Bureau, spoke with KXAN’s Will DuPree and Avery Travis about the fraud that can happen during severe weather and how to avoid it.
The National Insurance Crime Bureau is a nonprofit organization focused on fighting insurance fraud and crime.
Read a transcription of the interview below, or watch in the video player above. Some responses have been edited for clarity.
Will DuPree: People understandably want to fix any kind of storm damage to their homes or their property quickly. So what’s your advice about hiring someone who’s legitimate and not trying to scam them.
David J. Glawe: So we have a scope of a problem with criminal organizations that target those recovery funds that flow into areas after a catastrophic event. In the United States last year, we had a major weather event, one out of every 13 days that cost $1 billion to community. And when we see that, we’ve seen criminal organizations — these criminal fraudsters, sophisticated businesses, to go in and go after those billions of dollars. And you know that all too well in Texas and Central Texas — from wildfires, tornado events, hurricanes, tropical storms, you get it all down there.
Avery Travis: So if a storm victim ends up hiring contractors to start on some of those repairs, what should they be watching out for to ensure they’re not being defrauded?
Glawe: Yeah, a couple things to look out for. A legitimate contractor is going to have their business license that’s readily available. They’re going to have a list of references, and they’re also going to have job sites that they can say, “Hey, we’re working here. Here’s the address we’re working at. You go take a look at our work group.” But some things to look out for is door-to-door sales handing you a flyer saying that we’re associated with FEMA or a government agency, asking for a payment upfront and a contract to sign immediately. All those things should have your spidey sense tingling, and if that’s tingling, you need to walk away. It’s going to require a slow process to identify vetted contractors. You can verify they’re legitimate and they’re reputable. They do good work.
DuPree: Definitely. Some good advice for people to keep in mind as we head into more severe weather seasons. But your nonprofit actually sends teams into disaster areas. So what kind of work do they do to identify fraud and try to prevent that?
Glawe: We’ve been around for over 110 years. We have access to billions of claims records from our 1,300 insurance carriers that we partner with. We also have the records of the fraudulent criminal actors that operate throughout the United States. We pass that information directly to the state, federal, local law enforcement. We have investigators physically on the ground to supplement your state and local law enforcement officers. We help prosecute the crimes after we’ve identified them, so we bring really full services, community services, similar to the FBI, to these impacted areas.
Travis: We know that probably gives folks at home some peace-of-mind, knowing that you’re out there doing that work. We do want to note for people — hurricane season will begin soon. We know severe weather here in Central Texas is a huge concern. So talk to me about what people can do now to prepare ahead of any kind of storm to maybe protect themselves from potential scams if they are a victim later on.
Glawe: Couple of things to think about. Make sure your policies are up to date. Because of the inflation that we’ve had in the United States, you may not have replacement value of what it’s currently worth. So make sure your policies are up to date so you can get coverage. Thing is, too, is prepare to identify those contractors. Have multiple bids. When you look to have a contractor, make sure they have licenses, their license in your state or your municipality, and they have references and job sites. A couple other things to think about as well is you’re going to have to go slow. This is not going to be rebuilt — your property is not going to be rebuilt overnight. It’s going to be a slow, methodical process to get your lives back online. Work with your insurance carriers to go through that process.
