Grieving California widow and Palisades fire survivor, 71, loses $38,000 she saved to repair family home. How to protect yourself from disaster scams

“Every time I think about it, I’m reliving it,” Rudolph told ABC 7 Eyewitness News (2).

She notes that con artists exploited her vulnerability as both as a disaster survivor and grieving widow.

“They took advantage when I was, and am still, at my most vulnerable in my entire life,” Rudolph told ABC.

Now she’s speaking out in the hope that others like her will take steps to protect themselves.

The rise of disaster scams

Fraudsters claiming to be from PayPal emailed Rudolph about a ‘suspicious’ charge on her account.

Having lost her home and her husband, she was vulnerable and gave the con artists access to her bank account. They promptly stole the $38,000 she had saved up for home repairs.

Disaster scams target people like Rudolph precisely because they’re emotionally vulnerable in the wake of loss, and frequently concerned about finances. They may be struggling with insurance delays, contractor shortages and mounting repair costs.

Indeed, a Harris Poll survey found that more than a third (37%) of Americans impacted by a natural disaster have reported fraud (3).

According to the American Institute of CPAs, which commissioned the survey, the top disaster scams include:

• identity theft (14%)
• government assistance fraud (11%)
• loan scams (11%)
• vendor fraud (10%)
• utility scams (10%)
• charity fraud (10%)
• insurance fraud (10%)
• contractor fraud (8%)

The Consumer Financial Protection Bureau (CFPB) notes that some identity thieves pose as be Federal Emergency Management Agency (FEMA) workers in the wake of disasters, demanding victims pay them for home inspections or help with applications (4).

These fraudsters may also ask disaster victims to ‘verify’ their identity, collecting their names, addresses and Social Security Numbers, then use these stolen credentials to apply for FEMA assistance.

Scammers might impersonate mortgage lenders, insurance companies or government agencies, claiming they need your account information to deposit funds for an insurance claim, settlement or aid.

The CFPB also advises disaster victims to be wary of door-to-door contractors using high-pressure tactics.

Fraudsters might even set up a fake charity to funnel good-hearted people’s donations directly into their own pockets.

Protect yourself from disaster scams

Rudolph advises anyone who’s feeling emotionally vulnerable to avoid making any major financial decisions without first checking in with their bank, law enforcement or a friend.

If you’re approached by someone claiming to be from FEMA, an aid organization, your bank or your insurer, don’t give away any information upfront, like bank account or credit card numbers.

Instead, ask for their ID and paperwork so you can verify their identity independently. Confirm their credentials online and call the official phone number (for example, FEMA) directly.

To avoid charity scams, do your due diligence on sites like Charity Navigator and CharityWatch.

Before hiring a contractor or trade worker, see if they’re accredited with the Better Business Bureau. Ask for their business license and proof of insurance, and have them sign a formal written contract. Final payment shouldn’t be made until the work is completed. Also beware of price gouging.

Never send large upfront payments using unusual payment methods such as wire transfers, cryptocurrency or peer-to-peer apps, since it’s nearly impossible to get your money back afterward.

As a precaution, you can freeze your credit record for free at the three national credit reporting companies: Equifax, TransUnion and Experian.