CONSUMER ALERT: Carr Warns of Scams and Fraud with Recovery Efforts Underway Following Hurricane Helene

ATLANTA, GA – Attorney General Chris Carr is urging Georgians to be on the lookout for home repair fraud, charity fraud, imposter scams, and price gouging as families and communities throughout the state work to recover from Hurricane Helene.

“As we pray for the families of those who lost their lives and all Georgians affected by Hurricane Helene, our Consumer Protection Division continues to actively monitor reports of potential home repair fraud and other storm-related scams,” said Carr. “By doing research on a company or contractor, you can help to prevent one tragedy from leading to another. We won’t allow criminals to prey on families or business owners when they’re at their most vulnerable, and we stand ready to assist those who think they have encountered a scam.” 

Home Repair Fraud

When bad storms cause widespread damage to homes, criminals may try to exploit the disaster. These scam artists, often referred to as “storm chasers,” may ask homeowners for up-front payments for home repair service and then disappear without ever doing the work. In other cases, scammers may charge exorbitant prices for tree removal, charge you for unnecessary repairs or do substandard work. Sometimes scammers offer to cover the homeowner’s insurance deductible and persuade them to give fake reports to the insurance company, potentially implicating the homeowner in a case of insurance fraud.

The Attorney General’s Consumer Protection Division offers the following tips to help consumers avoid scams and other fraud in the aftermath of a storm:

• 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 (BBB) to see if there are any complaints against the business.
• Ensure that the contractor has the required licensing and/or affiliation:
  • Tree Removal: Check with the International Society of Arboriculture to make sure the person has a valid arborist license.
  • Water Damage and Mold: Only hire businesses that are local and qualified in mold remediation and property restoration. To find local contractors and restorers, check with the Society of Cleaning and Restoration Technicians and the Restoration Industry Association.
  • Contractors: General contractors, electricians, plumbers, and heating and air conditioning contractors must be licensed with the Georgia Secretary of State’s Office. To look up a contractor, visit sos.ga.gov. Please note that certain specialty occupations such as roofers, tree removal services, painters, drywall contractors and repair handymen are not required to be licensed by the state. 
• Legitimate contractors should be able to provide the following:
  • Business license
  • General liability insurance
  • Workers compensation insurance
  • Written manufacturer warranties
  • Written labor warranties
• Public adjusters are also required to carry a license to do work in Georgia. Before hiring a public adjuster to do any work on your behalf, call the Insurance Commissioner’s Office at 1-800-656-2298 to verify that he/she is licensed and that his/her contract has been approved.

For additional information about storm fraud, visit the Attorney General’s Consumer Protection Division website here.

Bogus Charities

Seeing or hearing about the devastation caused by a natural disaster evokes our sympathies and our desire to help those affected. Unfortunately, scammers realize this and do not hesitate to take advantage of people’s heightened emotions. They may pose as reputable charities soliciting donations and target consumers through unsolicited emails or telemarketing calls or by knocking on their doors. They often create legitimate-looking websites that have names similar to actual charities, sometimes even using the actual logo of a reputable relief organization. 

To make sure you are donating to a legitimate charity, the Consumer Protection Division recommends the following:

• Don’t respond to unsolicited emails and avoid clicking on any links they contain. Only open attachments from senders you know and trust.
• Don’t give out money over the phone unless you have initiated the call and are confident that the charity is legitimate.
• You can research a charity by going to www.give.org or www.charitynavigator.org.
• Look up the actual website of the charity you want to donate to rather than trusting a link from an email or pop-up ad.
• Note that legitimate charity websites typically end in “.org,” not “.com”
• Be cautious of crowdfunding sites. Since some crowdfunding sites do little to vet people who post for assistance after a disaster, be extra diligent about donating this way. The Better Business Bureau warns that some individuals posting for donations may not have any official connection to a charitable organization or could be using names and photos of victims without the permission of their families.

Price Gouging

On Sep. 24, 2024, Governor Brian Kemp issued a State of Emergency for all of Georgia in preparation for Tropical Storm Helene’s anticipated impact. This Executive Order invokes the Price Gouging Statute as it pertains to goods and services necessary for preparation, response, and recovery activities for this State of Emergency, including motor fuel, diesel fuel, and other petroleum products. These price gouging protections will remain in effect until 11:59 p.m. on Wednesday, Oct. 2, 2024.

For more information about price gouging, visit the Attorney General’s Consumer Protection Division website here.

Imposter Scams

Scammers may also try to steal your money by posing as a representative from an insurance company, Federal Emergency Management Agency (FEMA), Small Business Association (SBA) or law enforcement. Don’t give out personal or financial information to someone you don’t know. Remember that the services offered by FEMA and SBA are free, so if a “representative” asks you for payment, it’s a scam.

Reporting Contacts and Other Resources

If you think you may have been the victim of a scam or price gouging, contact the Attorney General’s Consumer Protection Division at 404-651-8600 or 1-800-869-1123 (toll-free in Georgia). Consumers can also file an online complaint here.

If you believe a roofer or other contractor has committed insurance fraud, file a report with the Insurance Commissioner’s Office here or call 404-656-2070 or 1-800-656-2298.

If you have trouble contacting or receiving a timely response from your insurance company or if you have questions about your insurance policy, call 1-800-656-2298 or visit the Insurance Commissioner’s website here.

Visit the FEMA Disaster Fraud page here. 

Visit the SBA Scams & Fraud page here.

Georgians are also encouraged to consult the Georgia Emergency Management and Homeland Security Agency’s informational website that includes tips on storm preparedness before, during and after a hurricane.