Emergencies and major disasters often bring out the best in us, producing stories of courage and heroism. Sadly, they also create opportunities for scams and crime.

Scammers go after your finances and material possessions, which are essential to supporting your family and organization through a disruptive event. And the effects of being a disaster and post-disaster fraud victim can have major consequences on your wellbeing and mental health.

Victims of disasters are often vulnerable and distracted. Scammers take advantage of this vulnerability.

Post-disaster insurance scams are often prevalent. Scammers will claim to be a broker or local insurance agent, saying they can expedite a disaster-related claim — sometimes even before you’ve filed one. They will ask you to provide your insurance or personal information.

Clean-up and repair scammers pressure victims into paying for disaster repair services that will never be provided or will be provided by unskilled, ill-equipped amateurs. In the wake of disaster events, criminals will contact disaster victims to offer bogus financial assistance, or to threaten adverse action should you not pay their bill for services never rendered.

Though sham contractors may knock on your door, the post-pandemic shift to online services and digital communication suggests you are far more likely to receive phone, text, and email scam attempts. Con artists and criminals are also after your personal information, which can be used to perpetuate other fraud schemes. With your name, contact information, social security or social insurance number, an impersonator might claim to be a disaster victim to access financial assistance through government funds.

An often-overlooked post-disaster risk comes from employers and business owners. Strained budgets and remote work environments are natural in the wake of disruptive events, but many organizational leaders unwittingly pause key risk management procedures. Workers who remain employed due to layoffs may agree to accept pay cuts, longer hours, or take unpaid furloughs, resulting in extreme work pressure, financial hardship and mental strain. And unfortunately, when opportunity, incentive, and rationalization come together, the stage is set for occupational theft and fraud.

Five steps to combat disaster scams

1. Get educated. In the wake of Hurricane Katrina, the U.S. federal government established the National Center for Disaster Fraud to assist post-disaster fraud victims. It provides educational resources and provides ways to report and investigate disaster fraud. The FBI Internet Crime Complaint Center is a place to report online fraud. And the Anti-Fraud Center in Canada provides information on current scams affecting Canadians and ways for reporting complaints.

2. Keep your guard up. Recognize that unfortunate events like natural disasters and national emergencies create a target-rich environment for criminals, fraudsters, and scammers to exploit the event. Apply the due diligence and common sense you usually would to in-person and online communications. Be wary of unsolicited telephone calls, emails, and knocks on your door. Also acknowledge the factors within your organization that may create scenarios ripe for internal and external fraud. Manage your fraud risk by assessing and implementing internal controls.

3. Don’t rush into decisions. Unless your house is on fire, there is no need to make an on-the-spot decision. If it’s a legitimate organization or investment opportunity, there should be time to consider it and consult your trusted confidants. If it sounds too good to be true, it probably is.

4. Don’t divulge personal information. Your PII and health information can be exploited, stolen, and used for other nefarious purposes. Remain vigilant in protecting it with technology and a healthy dose of skepticism when people approach you asking for it for any reason.

5. Transfer your risk by considering crime coverage. Cyber insurance, a basic homeowners or liability policy may not cover online post-disaster scams such as social engineering. Instead, you may need to consider a crime policy.

Contact your HUB broker to determine if you have the right personal or business insurance in place to protect you or your organization, especially should you be the victim of a disaster fraud scam or crime.