Avoiding scams

After a disaster, it is common for scammers to try to take advantage of those who were affected. These tips can help protect you from becoming a victim:

1. Research potential contractors. Shop around and request bids from multiple contractors to find one best suited to complete the repairs to your property. Review each bid carefully and don't be afraid to ask questions.
2. Use a licensed, bonded and insured contractor. Make sure the contractor you choose is licensed to perform the work — and always ask for their business information (license number, credentials and customer references). You can check the Better Business Bureau, perform web searches for reviews, and contact local licensing boards to confirm a contractor's license is active and they are in good standing. You can also call their insurance company to validate their insurance coverage. This is for your protection.
3. Obtain a written contract. Before work begins, get a written contract detailing the work to be performed, an itemized list of costs, completion date, draw schedule, and procedures for negotiating changes and settling any disputes. Before signing a contract, make sure all damages are covered in the bid or contract, check references, read the fine print, and never sign a contract with blank spaces.
4. Avoid upfront payments. Be wary of anyone who wants cash or the full payment up front. A reasonable down payment may be required to pay for the materials needed; however, no payments should be made without a signed contract. Do not make the final payment until all work is completed. Never pay with cash — always use a check or credit card so that you can keep track of and/or dispute payments later, if necessary.
5. Protect your personal information. If someone claiming to be from FEMA or another government agency comes to your home, calls you or emails you to ask for your Social Security number, bank account number, FEMA registration number or other sensitive information, DO NOT give them any information until you validate the person's identity. Ask for government identification or contact the agency using a verifiable phone number to confirm the person's identity before sharing your personal information.
6. Keep transaction records. Be sure to save all receipts and contracts for future reference.

If you think someone is trying to scam you, contact the FEMA disaster fraud hotline at 800-720-5721. You can also contact your local law enforcement, your state chamber of commerce or local Small Business Administration.