In the aftermath of the destructive wildfires across Southern California, the National Insurance Crime Bureau (NICB) is urging residents and business owners to remain vigilant against fraudulent contractors seeking to exploit vulnerable communities during recovery efforts.
The NICB said that it has deployed agents to the impacted regions to collaborate with local, state, and federal law enforcement agencies, as well as insurance companies, to prevent fraud. These efforts include leveraging NICB data and intelligence resources to investigate reported fraud cases.
The organization is also coordinating with state and federal agencies and insurance industry associations to support broader anti-fraud initiatives.
Given the extensive damage caused by the fires, the NICB anticipates a rise in fraudulent activities related to services such as debris and tree removal, home reconstruction, smoke and ash cleanup, and even medical services.
The organization also warned about unlicensed haulers who may illegally dispose of debris on public lands or in the desert instead of using state-approved landfills. Such actions can result in additional costs for homeowners and taxpayers.
While many contractors operate legitimate businesses and are vital to recovery efforts, the NICB cautioned that fraudulent contractors may use high-pressure tactics to deceive homeowners. These individuals often solicit business door-to-door, pressuring residents to sign contracts immediately – sometimes with incomplete terms – and demand upfront payment.
They may also ask homeowners to sign an Assignment of Benefits agreement, which can transfer the homeowner’s insurance claim rights to the contractor.
David J Glawe (pictured above), president and CEO of the NICB, emphasized the risks of post-disaster fraud.
"After these catastrophic events, fraudulent contractors pour into hard-hit communities to take advantage of residents who have already lost everything. Residents need to be vigilant and know the signs of a fraudster, so they can avoid being victimized a second time,” he said.
The NICB advises residents and business owners to verify contractors' credentials, avoid paying large sums upfront, and carefully review all contract terms before signing to safeguard themselves during the rebuilding process.
What are your thoughts on this story? Please feel free to share your comments below.