Washington – The Department of Justice, the FBI and the National Center for Disaster Fraud (NCDF) remind the public there is a potential for disaster fraud in the aftermath of a natural disaster.Suspected fraudulent activity pertaining to relief efforts associated with the recent series of tornadoes in the Midwest and South should be reported to the NCDF hotline at 866-720-5721.
The NCDF, a national coordinating agency within the Department’s Criminal Division, operates a call center at Louisiana State University in Baton Rouge and serves as a centralized clearinghouse for disaster fraud complaints and information relating to both natural and man-made disasters.
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Types of disaster fraud. Disaster fraud, which we’ll define as a deliberate act to defraud individuals or the government after a catastrophe, can be divided into five primary categories: charitable solicitations, contractor and vendor fraud, price gouging, property insurance fraud, and forgery.
Also, beware of unscrupulous contractors who offer to manipulate the price to cover your deductible or extra work not caused by the catastrophe. This is insurance fraud, and insurance fraud is a felony. Insurance coverage may be rendered void if there is misrepresentation by an insured. Tips to Avoid Contractor Fraud
The total damage costs were $71bn, according to the National Oceanic and Atmospheric Administration. New Jersey region have been charged with similar instances of disaster-relief fraud in the years.
Woman who called Michelle Obama an ‘ape in heels’ pleads guilty to FEMA fraud originally. who grabbed national headlines in 2016 for calling michelle obama an "ape" has pleaded guilty to embezzling.
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In other cases, disaster benefits are more difficult and take longer to obtain, with a series of verifications built into the application process. Unsurprisingly, research finds that the more difficult benefits are to obtain, the fewer the cases of clear-cut fraud. How to reduce crime in times of disaster
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The FBI and the National Center for Disaster Fraud (NCDF) reminded the public that there is a potential for this type of fraud in the aftermath of all catastrophes.