Business owners in disaster areas need to exercise caution as scammers take advantage of the aftermath of Hurricanes Milton and Helene to target those seeking relief. Various government agencies, including the Federal Trade Commission, Department of Justice, and Consumer Financial Protection Bureau, are warning people to be on the lookout for identity theft, price gouging, and other fraudulent activities. Small business owners need to be especially vigilant as scammers can strike through online platforms and in person.
Jennifer Butler, a partner in disaster recovery at global advisory firm EisnerAmper, highlighted the increase in cyberattacks during disasters and advised small businesses to be aware of scams, phishing attempts, and cyber threats. She emphasised the importance of verifying the identity of individuals working with their businesses by requesting IDs and documentation to prevent falling prey to scams. Owners should also be cautious of anyone requesting upfront payments, especially those claiming to be from governmental organisations like the Small Business Administration.
Reports from Florida mention scammers posing as Federal Emergency Management Agency officials trying to obtain financial information from storm victims, indicating the prevalence of fraudulent activities in disaster-stricken areas. If business owners suspect any fraudulent activity, they are encouraged to report it to FEMA at 1-866-720-5721.
In conclusion, it is crucial for business owners in disaster areas to remain vigilant and sceptical of potential scams targeting them in the guise of providing disaster relief. By taking proactive measures to verify identities, refrain from making upfront payments, and report suspicious activities, small businesses can protect themselves from falling victim to fraudsters preying on vulnerable situations.