Texas flood victims warned to watch out for scammers, contractors

AUSTIN (KXAN) – The Office of Attorney General Ken Paxton is warning Texans to watch out for opportunistic scammers, fraudulent charities and price gougers attempting to profit off the tragic July 4 flooding disaster.

Extraordinary rainfall over the Independence Day weekend caused unprecedented river rises and torrents that inundated communities across Central Texas and the Hill Country. More than 100 have been confirmed killed, including over two dozen young girls and counselors at Camp Mystic in Kerr County.

As the death toll continues to rise, so do calls from communities and charitable organizations to pitch in and help people who have lost loved ones and property.

But, according to a consumer alert from Paxton’s office, Texans should be skeptical and discerning when selecting charities that claim to be helping flood victims and recovery.

“Unfortunately, there are some heinous individuals who are trying to use this tragedy to perpetrate scams and steal money from those wanting to help Texans impacted by this devastating flooding,” Paxton said in a news release Tuesday.

Paxton’s office recommends the following practices for people who want to donate and assist recovery efforts:

• Do not wire money or provide personal banking information like account, credit card, or social security numbers.
• Research charities before donating. Two tools to check credentials are CharityWatch and Guidestar, which keeps IRS data on nonprofits.
• Don’t trust names or phone numbers, which can be faked.
• Watch out for text message solicitations for donations, also called “smishing.” 
• Enter your name in the Texas Do Not Call Registry (by visiting  https://www.texasnocall.com or by calling toll-free at 1-888-309-0600) and the National Do Not Call Registry, by visiting www.donotcall.gov or by calling toll-free at 1-888-382-1222 (TTY 1-866-290-4236).

Scammers

On Monday, Paxton’s office also warned about scammers who might claim to help rebuild damaged property and homes.

Paxton said he “will not rest” until the “morally bankrupt people” trying to take advantage of the disaster are brought to justice.

“Flood victims are reminded to be wary of contractors from out of the area, don’t rush into signing a contract, ask for references, and check with the Better Business Bureau to ensure they’re working with a trustworthy business,” Paxton’s office said in a news release. “In addition, under state law, once the governor issues a disaster declaration, vendors are prohibited from charging exorbitant prices for necessities during and after the crisis.”

More information on disaster scams is available here and below:

• Warning on flood-damaged cars.
• Recommendations on door-to-door contractors.

Price gouging

It is illegal to exorbitantly raise prices on certain goods and services after the governor or president has declared a disaster, according to the OAG.

Gov. Greg Abbott has made a disaster declaration for the following counties: Bandera, Bexar, Burnet, Caldwell, Coke, Comal, Concho, Gillespie, Guadalupe, Kendall, Kerr, Kimble, Llano, Mason, McCulloch, Menard, Reeves, San Saba, Tom Green, Travis, and Williamson.

Common drinking water, housing, food and fuel, according to the OAG.

Instances of excessive price hikes should be reported to the OAG’s office, which has authority to prosecute. Price gouging complaints can be made here.

KXAN has asked the Attorney General’s Office for instances of price gouging, scams and charity frauds related to the July 4 floods, and we will update this report when more information becomes available.