Disaster Aid Scams Thrive on Vulnerability, Report Highlights

Disaster survivors and those seeking to help them are increasingly targeted by scammers, with a new report from the U.S. Government Accountability Office (GAO) emphasizing that enhanced education and awareness are crucial to combating these fraudulent activities. The report, prompted by a provision within the American Relief Act of 2025, examined the landscape of disaster assistance scams following significant natural events in 2023 and 2024, and found that while federal agencies are employing educational measures, underreporting and prosecutorial challenges persist.

The GAO’s findings underscore that scams, by their nature, rely on deception and manipulation to achieve financial gain, often preying on the emotional vulnerabilities of victims. Disaster assistance scams specifically exploit the desperation and heightened susceptibility of individuals and communities reeling from events like floods, hurricanes, and wildfires. These fraudulent schemes can further exacerbate the losses already incurred by disaster survivors, compounding their difficulties. As natural disasters become more frequent, the GAO anticipates a corresponding rise in the prevalence of related scams.

While the exact scale of disaster assistance scams remains elusive due to significant underreporting, surveys, including one conducted by the U.S. Census Bureau, indicate that a substantial number of individuals encounter such scams during the recovery process. Federal agencies do collect complaint data that includes allegations of these types of scams. These agencies, which include disaster response entities like the Federal Emergency Management Agency (FEMA), the Small Business Administration (SBA), and the Department of Housing and Urban Development (HUD), as well as specialized bodies like the National Center for Disaster Fraud, review these complaints to identify potential areas for further investigation. However, limitations in the available data prevent the GAO from establishing accurate estimates of the frequency of these scams or the total financial losses incurred.

Federal agencies are actively engaged in consumer education initiatives aimed at raising awareness and mitigating the risk of individuals falling victim to disaster assistance scams. Strategies employed include setting up information booths at disaster recovery centers, displaying signs with practical tips on identifying, reporting, and avoiding fraudulent schemes, and disseminating information through online channels, including press releases and emergency app push notifications. Despite these efforts, several factors hinder effective enforcement actions against scammers. A primary obstacle is the substantial underreporting of scams. Many disaster assistance scams go unreported to federal agencies for a variety of reasons, including victims’ feelings of shame or embarrassment, a belief that reporting will yield no positive outcome, and a general lack of knowledge regarding the proper reporting procedures. Even when complaints are filed, prosecuting these scams presents its own set of challenges, including time and resource constraints, the need for case prioritization, and the increasing sophistication of international scam operations.

Article by Mel Anara, based upon information from the U.S. Government Accountability Office.

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