The Aftermath of the Los Angeles Wildfires

Beginning January 7, southern California saw what would become some of the most destructive wildfires in the state’s history. Low humidity, dry vegetation, and strong winds created ideal conditions for these fires to catch and spread quickly.

Though firefighters work tirelessly in their containment efforts, tens of thousands of acres have burned, with hundreds of thousands of people forced to evacuate from the region. Many are permanently displaced due to the loss of their home.

Recovery efforts will be extensive, but disaster response experts across the nation gather in southern California to take on the challenge. The National Insurance Crime Bureau (NICB) strives to support those affected through awareness and proven fraud-fighting efforts. 

NICB Helps Wildfire Victims Fight Fraud

Due to the scale of this disaster, NICB believes unprecedented levels of fraud will be attempted and/or committed. To help mitigate this issue, NICB agents have been deployed to the region to assist insurance carriers, law enforcement partners, government agencies, utility companies and the public help begin the recover and to help protect victims from fraud.

NICB actively works to support those impacted in the Los Angeles area by:

• Supporting the California Department of Insurance in their community outreach efforts to effected home and business owners
• Assisting the California Highway Patrol with vehicle identification and inspection of vehicles left on public roadways
• Assisting the LAPD with vehicle inspections for vehicles abandoned in the city
• Leading investigations of fraudulent behavior throughout the recovery process
• Promoting fraud education via media, public service announcements, and social media channels. 

Where to Get Help

Insurance Villages - Once established, we will publish locations of insurance villages where you can access many insurance insurance carriers to seek assistance. 

Know the Signs of Fraud

Though we never think it will happen to us, fraud runs rampant following a disaster. Criminals pose as contractors, insurance professionals, FEMA representatives, and other officials to take advantage of people when they are at their most vulnerable. Protect yourself and your loved ones by educating yourself on what various types of fraud look like. 

NICB recommends: 

Know your rights when working with your insurance company

• Call your insurance company to create a solid plan of action following a disaster
• Be familiar with your insurance policy and direct any questions about your benefits or limits directly to your insurance company.
• Do not seek clarification about your insurance from contractors who may misinterpret the policy’s language.
• Do not sign an Assignment of Benefits (AOB) form, which allows contractors to take control of your benefits and seek direct payment from your insurance company.

Follow your instincts when working with a contractor

• Seek estimates from multiple professionals and don’t be pressured into choosing a specific contractor.
• Research all contractors (especially those who claim to be from out of state to support disaster victims). Only work with those who are properly licensed and insured. 
• Ask your potential contractor for references and use a trusted resource, like the Better Business Bureau, to verify them.
• Ask to see the contractor or public adjuster’s driver’s license and business or contracting license. Document them for personal reference as needed. 

Remain vigilant while work is being performed

• Get all contract terms in writing, including cost, time schedules, payment schedules, guarantees, and other expectations.
• Avoid signing a contract with blanks, as scammers may fill in the blanks without your knowledge after they have your signature.
•  Do not issue payment or sign a completion certificate until after the contractor finishes their work and you are certain it is up to code. 

Scams in process in LA

The Los Angeles Police Department (LAPD) has identified six forms of fraud scammers may utilize to exploit individuals in distress. These include:

• Unsolicited in-person solicitations: Individuals may approach to offer assistance with repairs, insurance claims, or disaster support. 
• Fake city, county, or federal employees: Do not trust anyone who claims to be a government representative if they do not have the proper identification to prove it. 
• Phone/text scams: Beware of unsolicited phone calls or text messages asking for donations or claiming to offer recovery assistance, especially when they request your Social Security or bank account details.
• False job solicitation: When searching for work related to fire recovery, be wary of job offers on social media posing to be from a government or other reputable agency.
• Gift card/payment scams: If you are asked to pay for services or “government fees” via gift cards, wire transfers, or cryptocurrency, it is likely a scam.
• Fraudulent donations: Before donating to an organization for fire relief, verify the legitimacy of the organization via platforms like Charity Navigator.