Winter Storm Scams Are Rising — Here's How to Protect Your Money

Officials across the United States are warning citizens affected by the recent winter storms about weather-related scams and price gouging tactics.

Catherine Hanaway, the Attorney General for Missouri, has identified two main forms of consumer scams looking to profit off the financial and lifestyle challenges millions of Americans are confronted with during these weeks of severe winter weather: utility scams and contractor scams.

Utility scams involve scammers contacting or showing up at the property of the utility consumer, without prior warning. They may claim to represent the company of the existing utility provider. Most often, utility scammers will claim that the customer has not paid their most recent bill, or that they need to be paid upfront to repair or replace equipment.

Contractor scams involve people fraudulently claiming to be licensed and insured contractors. Contractor scammers often refuse to show their license or pressure victims into making quick decisions about paying for their services, usually upfront. Prices will often increase as their claimed services are continuously delayed, at a cost to the customer.

Price gouging is also a serious issue for consumers. Manipulative corporations and stores can hike up their prices based on the level of demand during extreme weather. For example, boots, car de-icers, shovels, and food supplies are often subject to price gouging by dishonest sellers looking to make a profit off of the winter storm.

Another get-rich-quick scheme, known as "storm chasers", sees homeowners in vulnerable areas being subject to major upfront costs for weather-based services, such as tree surgery or roof repair. Often, storm chaser scammers will disappear without providing the service after money is paid.

How to Avoid Winter Weather Scams

The Missouri Attorney General recommends calling the consumer protection line for your local state government if you suspect any illegitimate practices, or contacting them through the relevant website. In many states, lawmakers have promised to prosecute those found guilty of engaging in predatory business practices with consumers affected by the extreme weather.

The guidelines also recommended that individuals should "document the time, place, address, and name of the business, note the price paid, compare it with nearby prices, and take pictures."

Hanaway also advised consumers to verify contractor credentials, by asking the contractor or by conducting research via online reviews. They also suggested checking with the Better Business Bureau and using their Scam Tracker on their webpage. Here, the organization can track any reported scams associated with the business or contractor's name.