Hurricane Scam, Price Gouging Targeted by Justice Department and Federal Agencies

A Lee County Sheriff's officer patrols the streets of Cape Coral, Fla., on Oct. 9, 2024, as heavy rain falls ahead of Hurricane Milton. Marta Lavandier/AP Photo

A collective of federal agencies issued a warning as Hurricane Milton neared Florida’s western coast that any business or individual caught engaging in scams and price gouging would face the full force of the law.

In an Oct. 9 statement, the Justice Department (DOJ), the Federal Trade Commission (FTC), and the Consumer Financial Protection Bureau (CFPB) warned consumers to be on high alert for possible bad actors during natural disasters.

United States Attorney Ronald Gathe Jr. for the Middle District of Louisiana said severe weather events often bring out opportunistic scammers.

“Wrongdoers are looking to exploit opportunities and victims of natural disasters for their own personal gain,” he said.

“The Justice Department, including the [National Center for Disaster Fraud], stands ready to prevent these bad actors from fraudulent activity.”

The agencies warned customers to be on the lookout for scammers soliciting donations using charity names that appear to be linked to the disaster. Extra caution should be taken around offers of disaster relief in exchange for personal information, money, or investment opportunities related to disaster recovery, including rebuilding or flood-proofing.

Scammers can and do impersonate government officials and other legitimate businesses to help broker trust.

Federal officials claim any solicitation for payment via wire transfer, gift card, payment app, cryptocurrency, or cash should be treated with no small amount of caution because only scammers will use these methods.

Businesses Also Put on Notice

According to FTC Chair Lina Khan, scammers are not the only ones trying to take advantage of the disaster; some businesses are also price-gouging and raising the prices of goods people desperately need and can’t get elsewhere.

“As Americans seek safety from natural disasters, we’re hearing troubling reports of price gouging for essentials that are necessary for people to get out of harm’s way—from hotels to groceries to gas,” she said.

“No American should have to worry about paying grossly inflated prices when fleeing a hurricane.”

The federal agencies said they would be paying attention to price gouging for essential goods and services needed by disaster victims and businesses using supply chain disruptions as a cover for collusion to overcharge customers.

They have also warned to avoid anyone who promises they can help you qualify for relief if you pay them a fee or provide another form of payment. No fee is required for disaster relief.

On Oct. 5, Hurricane Milton formed as a tropical storm in the southwest of the Gulf of Mexico. It expanded and has since made landfall on Florida’s west coast, spawning tornadoes and lashing the region with all manner of rain and wind. Millions of residents have evacuated or are racing to escape.

Hurricane Milton has come less than two weeks after Hurricane Helene devastated the Gulf Coast and killed at least 225 people across several states.