July 23, 2008

THIS IS A PRESS RELEASE FROM THE BETTER BUSINESS BUREAU:

Hello Hurricane Dolly! Say Good-bye to Con Artists Who Prey on Disaster Victims

BBB Offers Tips on How to Avoid a Surge of Scammers
 
Austin, Texas, July 23, 2008 - As the Texas Gulf Coast faces the full wrath of Hurricane Dolly, many people are looking for ways to help by donating time or money. Others are looking for a chance to make a quick buck. BBB wants to warn everyone that fraudulent charities will likely emerge to try and scam contributions from well-meaning donors.

BBB also cautions homeowners against contractor con artists looking for a quick buck in the wake of a storm. How can you tell a capable contractor from a polished pretender? Here's how to help ensure a good job before it begins:

Ask the right questions. Local contractors are likely to be flooded with work in the wake of a serious storm. But that is no reason to fall for a scam artist. There are several ways to spot a questionable pro right from the start. An address that can't be verified is an immediate red flag, as is someone who uses only a post office box or who has an answering service or cell phone with no separate listing.

Be wary of out-of-states plates. Unsolicited "contractors" who knock on the door with an offer to fix a damaged roof or windows may easily disappear once cash is in hand. Also be wary of hefty discounts with no mention of the total cost, as well as pros who want to use your home as a "demo" or claim that they're doing a job in the neighborhood and have leftover materials. Other reasons to keep looking: high- pressure sales tactics, threats to rescind a special price if you don't sign on the spot, and dire warnings that your house puts you at peril.

Get at least three written estimates. Be sure each bid includes a timetable and the specific products and materials you want as well as the labor. Material and product allowances should give prices and quantities. And don't jump at the lowest bid. A rock-bottom price could mean the pro is cheaping out on materials and excluding essentials

Stay involved. Surprises often happen once work begins. Be sure you're reachable during the day. Then set aside time with the contractor each morning or evening for a daily progress report.

To research reliable contractors go to www.bbb.org.

BBB also cautions hurricane victims and people wishing to make disaster-related charitable donations to avoid unscrupulous scam artists by following these tips:
Don't give or send cash.

Don't give out personal financial information - such as Social Security numbers or credit card and bank account numbers and passwords - to anyone who solicits a contribution from you. Scam artists use this information to steal your identity and financial resources.

Be wary of charities with names that sound like familiar or nationally known organizations. Some phony charities use names or websites that sound or look like those of respected, legitimate organizations. The IRS Web site at IRS.gov has a search feature that allows people to find legitimate, qualified charities to which donations may be tax-deductible. Legitimate charities may also be found on the Federal Emergency Management Agency (FEMA) Web site at Fema.gov.
"Whenever there is a major natural disaster, there are two things you can count on. The first is the generosity of Texans to donate time and money to help victims, and the second is the appearance of poorly run and in some cases fraudulent charities," said Carrie A. Hurt, President and CEO of BBB Serving Central and South Central Texas. "Not only do Texans need to be concerned about avoiding fraud, they also need to make sure their money goes to competent relief organizations that are equipped and experienced to handle the unique challenges of providing assistance to disaster victims."

Such fraudulent schemes may be perpetrated through the telephone, Internet, e-mail or in-person solicitations. Scam artists can use a variety of tactics. For example, some scammers operating bogus charities may contact members of the public by telephone to solicit money or financial information.

"We encourage people to be prudent when they are solicited for disaster donations," says Hurt. "Don't be taken in by scam artists more interested in lining their pockets than helping others."

Rely on expert opinion when it comes to evaluating a charity. Go to www.bbb.org/charity to research charities and relief organizations to verify that they are accredited by the BBB and meet the 20 Standards for Charity Accountability.