Business owners in disaster areas should be wary of possible scams

NEW YORK — The devastation of Hurricanes Milton and Helene have opened the floodgates for people seeking disaster relief. Along with that comes the danger of fraud.

The Federal Trade Commission, Department of Justice and the Consumer Financial Protection Bureau are all warning consumers to be wary of identity theft, price gouging and other fraud.

Small business owners should stay alert too and recognize that the scammers can strike both online and in person.

“We’ve seen an uptick in cyberattacks during disasters,” said Jennifer Butler, partner in disaster recovery at global advisory firm EisnerAmper. “Small businesses should really pay attention to that, really be aware of scams, of phishing attempts or potential cyberattacks on their systems. Because this is the time when, you know, those bad actors are going to come after small businesses.”

Because small businesses might have a variety of employees and contractors coming and going after a disaster as they seek to mitigate damage and reopen, owners should be vigilant about verifying the identity of anyone they're working with.

“Always ask for ID, documentation, those kinds of things,” Butler said. No one should be asking for payment up front, particularly anyone that says they're from a government organization such as the Small Business Administration. “Make sure you’re not paying anybody to help you if they’re saying that they’re from the federal government,” she added.

Florida officials have said there are reports of scammers in the area who are posing as Federal Emergency Management Agency officials and trying to get financial information from the storm’s victims.

If owners do suspect they may be a victim of fraud, contact FEMA to report any suspicious activity or potential fraud at 1-866-720-5721.