Consumer Alert: Post-Disaster Scams and Fraud

Detected March 18th, 2026

Summary

The Missouri Department of Commerce and Insurance (DCI) is reminding consumers to protect themselves from post-disaster scams and fraud. The notice outlines common scams such as contractor fraud, price gouging, forgery, and charity fraud, and advises consumers to maintain loan payments and communicate with lenders.

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What changed

The Missouri Department of Commerce and Insurance (DCI), through its Divisions of Finance and Credit Unions, has issued a consumer alert to warn residents about increased risks of financial scams and fraud following recent severe weather events. The alert emphasizes the importance of continuing loan payments despite property damage, maintaining communication with lenders, and being vigilant against fraudulent offers, particularly those requiring upfront fees or pressuring immediate action. It also highlights specific scam types prevalent after disasters, including contractor fraud, price gouging, forgery, and charity fraud.

Consumers are advised to report any suspected fraud to their bank or lender immediately and to document details. The notice provides a hotline and website for reporting disaster-related fraud to the National Center for Disaster Fraud. While this is a consumer advisory and not a binding regulation, failure to heed its warnings could lead to significant financial losses, identity theft, and damage to credit scores, underscoring the need for proactive financial management and scam awareness during recovery efforts.

What to do next

Advise consumers to continue making loan payments and communicate proactively with lenders regarding damaged property.
Educate consumers on common post-disaster scams including contractor fraud, price gouging, forgery, and charity fraud.
Instruct consumers to report suspected fraud to financial institutions and the National Center for Disaster Fraud.

Source document (simplified)

Missouri Department of Commerce and Insurance reminds consumers to protect their finances, be aware of post-disaster scams and fraud

JEFFERSON CITY, Mo. – As Missourians continue to recover from multiple severe weather events this spring, the Missouri Department of Commerce and Insurance (DCI) reminds consumers to take steps to protect their finances and avoid post-disaster scams and fraud.

After a disaster, maintaining communication with your mortgage and auto lenders is crucial to the claims process and preventing potential financial hardship or credit damage. Do not stop making your loan payments, and be sure to provide updated contact information to your creditors if your ability to send or receive correspondence, whether by mail or electronically, has been hampered by storm impacts.

“Even when collateral securing a loan has been damaged or destroyed, make every effort possible to continue regular loan payments during the claims process,” Missouri Division of Finance Commissioner Mick Campbell said. “This will help you avoid late charges, delinquent loan status and damage to your credit score prior to claim proceeds being issued to repair your property or applied to your loan balance.”

If your home or car is damaged, it is important to contact your lender right away to make them aware of your situation. Proactive communication ensures your lender understands your unique circumstances and can provide guidance based on your needs.

Unfortunately, disasters often attract scam artists, so staying vigilant and watching for signs of potential fraud is also key to protecting your financial security. Be cautious of loan offers that require upfront fees to obtain loan proceeds or companies offering loans or payment assistance that pressure you to act immediately. Ensure that any lender or financial service provider is authorized to conduct business in Missouri.

“You can never be prepared enough for a natural disaster. Bad actors know that these events can create vulnerabilities and will take advantage of individuals during a weakened state of mind,” Missouri Division of Credit Unions Acting Director Emmett Bryson said. “Unfortunately, having supplies and financial resources to withstand disasters is just not enough. Being knowledgeable or aware of the signs of potential fraudsters may protect you from the risk of experiencing financial damages that could exceed the damage created by the natural disaster itself.”

Certain scams are more prevalent following natural disasters and could have a significant impact on your finances. Be on the lookout for the following types of fraud:

Contractor Fraud – Unethical contractors sometimes misrepresent themselves as affiliated with government entities and scam victims out of funds, resulting in shoddy repairs or no repairs at all.
Price Gouging – The practice of increasing prices of high-demand goods and services during a disaster.
Forgery – Scammers will use a disaster as an opportunity to get access to victims’ personal information and documents to commit identity theft.
Charity Fraud – Scammers posing as representatives from notable charities, including the Red Cross, will solicit funds from donors who want to help those affected. DCI's Division of Finance and Division of Credit Unions encourage anyone who believes they have been a victim of fraud to act fast to secure all accounts and document details to share with their bank or lender.

To report disaster-related fraud, victims can call the National Center for Disaster Fraud Hotline at 866-720-5721, 24 hours a day, seven days a week, or visit www.justice.gov/disaster-fraud for more information.

Consumers with banking, mortgage lending or other financial services questions can contact the Division of Finance at (573) 751-3242 or finance@dof.mo.gov. For questions about credit union services, contact the Division of Credit Unions at (573) 751-3419 or cu@cu.mo.gov.

DCI's Division of Credit Unions examines and oversees Missouri's 80 state-chartered credit unions with over $22 billion in assets. DCI's Division of Finance regulates Missouri's 192 state-chartered banks with over $208 billion in assets and 2,399 consumer and mortgage lending licensees.

DCI is charged with protecting Missouri consumers through oversight of the insurance industry, banks, credit unions, utilities and various professional licensees operating in the state. For more information about the department, please visit our website at dci.mo.gov.

Published Date

Wed, 06/11/2025 - 11:15