Georgia officials alert consumers to tornado ‘storm chaser’ frauds
Dishonest contractors and fake charities characterize the scams targeting recent tornado victims in the South.
In a scene that’s becoming increasingly common after a catastrophe, unscrupulous “storm chasers” are targeting tornado victims, Georgia Attorney General Chris Carr and Insurance Commissioner John King said in a recent statement.
“Unfortunately, bad actors know to target victims at their most vulnerable, such as after a storm-related loss,” Commissioner King said. “Beware of anyone who shows up at your home or place of business immediately after a storm. Your first call after a disaster should be to your insurance company to file a claim. Whether it’s a contractor or public adjuster, do your research and verify credentials before signing any contracts or agreeing to any services.”
Georgia was one of a handful of states impacted by a tornado outbreak that swept across the Southern U.S. in early April 2022. The event caused roughly $1.3 billion dollars in damage, according to the National Oceanic and Atmospheric Administration, injured more than a dozen people and caused one fatality.
“With con artists ready to prey on those impacted by the recent storms, we want to ensure that consumers are aware of their protections under the law and know how to spot a scam,” Attorney General Carr said. “If your home or business was damaged, we urge you to thoroughly research a contractor before hiring anyone to make repairs. We understand this is a difficult time for many families across our state, and our Consumer Protection Division stands ready to assist any Georgian who thinks they have encountered potential fraud.”
The pair said criminals commonly exploit victim desperation in the wake of a disaster. They may ask for money up front for repairs and then disappear with the cash, charge exorbitant prices, complete unnecessary repairs or do substandard work. Scammers may also encourage storm victims to submit fraudulent insurance claims.
They offered the following advice to help storm victims avoid “storm chaser” fraud:
- Steer clear of any contractor who asks for full payment up-front, only accepts payment in cash, or refuses to provide you with a written contract.
- Avoid door-to-door offers for home repair work. Instead, ask friends and neighbors for referrals.
- Be skeptical of any contractor that offers to pay your insurance deductible or offers other no-cost incentives, as these can be signs of a scam. Always talk to your insurance company before committing to any storm-related repairs or inspections.
- Ask contractors for references and check them out.
- Check with the Better Business Bureau to see if there are any complaints against the business.
- Ensure that the contractor has the required licensing and/or affiliation for tree removal, water-damage repairs and mold mitigation.
- In Georgia, contractors, electricians, plumbers, and heating and air conditioning repair people must be licensed. Ditto for public adjusters.
- Legitimate contractors should be able to provide a business license; general liability insurance; workers compensation insurance; written manufacturer warranties and written labor warranties.
Carr and King also encouraged consumers to be wary of fraudulent charities that pop up in connection with a disaster.
Some of the government resources available to storm victims in Georgia include the Attorney General’s Consumer Protection Division, the Georgia Secretary of State’s Charities Division and the state Insurance Commissioner’s Office.
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