NICB Warns of Contractor Fraud in Wake of Severe Weather
Following widespread damage from severe weather across multiple states including tornadoes, thunderstorms, and wildfires, the National Insurance Crime Bureau (NICB) is cautioning residents and business owners about potential fraud schemes. The agency is working with local, state, and federal law enforcement, as well as insurance companies, to assist in recovery efforts and prevent fraudulent activity.
NICB agents are being deployed to monitor for fraud as rebuilding commences after first responders complete their emergency work.
According to Charlie Worsham, NICB’s regional director in the Southeast region, spring weather systems can create the perfect conditions for catastrophic weather events. He noted that some contractors may offer help but then disappear after receiving payment, leaving the work incomplete. The states impacted include Arkansas, Missouri, Ohio, the Tennessee Valleys, South Carolina, and Oklahoma.
Niambi Tillman, a regional director at NICB, emphasized the importance of identifying fraud risks, stating that understanding the warning signs of untrustworthy contractors is crucial for protecting residents and deterring crime. Fraudulent schemes frequently involve individuals or companies offering services such as debris removal, home construction, and medical assistance.
NICB advised residents to verify credentials and consult their insurance providers before hiring any contractor. Common red flags include:
- High-pressure sales tactics through door-to-door solicitation, phone calls, or online messaging.
- Contractors pushing for immediate contract signing, especially with blank spaces in documents.
- Upfront payment demands.
- Assignment of Benefits (AOB) agreements, which transfer claim rights to contractors.
The agency also recommended that residents immediately contact their insurance provider to report property damage, review all claim-related documents, and consult with their insurer before proceeding with repairs. Residents should be wary of making full payments upfront or signing a completion certificate before confirming the work is finished.
If anyone suspects fraud, they should report it to law enforcement and their insurance provider. The agency also advised caution when sharing personal information over the phone, especially with unsolicited callers.
Similar concerns have arisen in other states experiencing severe weather events. The NICB said that Law enforcement and consumer protection agencies are continuing to monitor recovery efforts to prevent fraud.
