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How to Safeguard Your Business After the Storm
Learn how to safeguard your business when disaster recovery opens the door to risk.
When a hurricane hits, the immediate concerns are clear: structural damage, power outages, business disruption, and employee safety. Yet, as businesses work through the aftermath and get back up and running, a second wave of risk often follows in the form of opportunistic scammers preying on disaster zones.
Why Businesses Are Vulnerable After a Storm
Because business owners are under pressure to resume operations, they often move quickly to hire contractors and apply for aid, which means the normal vetting processes might be overlooked.
“During a disaster, everybody is anxious and fearful about the potential impact, and they may become vulnerable during the post-disaster chaos,” says Ana Campaneria-Villarini, Senior Vice President and Director of Corporate Fraud at BankUnited. In addition to heading up the bank’s antifraud program, focusing on prevention, detection, recovery, reporting, and investigation of fraudulent activities, Campaneria-Villarini is also president of the Financial Institution Security Association (FISA), giving her a holistic view into fraud schemes designed to exploit the chaos.
“Those fighting financial crime have observed a sharp rise in post-disaster fraud schemes, particularly as social media enables fraudsters to reach wider audiences quickly, during times of chaos and vulnerability,” she says.
With hurricanes inevitably on the horizon, we’ve put together guidance on how businesses can detect and avoid post-storm scams.
4 Common Hurricane-Related Scams to Heed
Scam 1: A deceptive contractor or recovery service offers to do the necessary work quickly but wants payment upfront.
After a hurricane passes, scammers often move quickly into hard-hit areas, posing as legitimate contractors or recovery specialists. They may offer to perform urgent repairs, like fixing the roof or removing debris, but demand full or partial payment upfront and then disappear without doing the work. “ Some of these fraudsters may go as far as researching your property online or casually mentioning neighbors’ names to gain your trust” says Campaneria-Villarini. “They might even claim to be working with your insurance company which makes the pitch feel more legitimate, but it’s rarely the case.”
Scam 2: A fake government official approaches you, offering disaster relief loans or grants.
Fraudsters know that legitimate government agencies provide disaster assistance, which makes their impersonation more believable. By completing what appears to be a legitimate form(s), you risk exposing sensitive personal and financial information like Social Security numbers or bank account details and being deceived into originating an upfront fee payment, says Campaneria-Villarini.
Scam 3: A phony charity or organization offers funds or solicits donations for hurricane relief.
Sadly, fake charities emerge in full force after disasters, exploiting people's generosity and desperation during vulnerable times. These fraudulent organizations may use official-sounding names that closely mimic legitimate relief groups, making it difficult to distinguish who is offering genuine assistance. Not only can you lose your financial donation, but so will the legitimate organization that would have otherwise benefited from it.
Scam 4: An opportunistic vendor offers essential supplies or services at inflated prices.
“Price gouging is especially common after a disaster, particularly for high-demand items like generators or urgent home repairs such as roof or fence replacements. In moments of desperation, many families are willing to pay almost any price to protect their homes, businesses, and loved ones,” says Campaneria-Villarini. Fraudsters are well aware of this desperation and often exploit it, sometimes collecting payment without ever delivering the promised goods or services.
6 Ways to Protect Yourself from Common Disaster-Recovery Scams
1. Prepare a comprehensive disaster recovery plan.
There’s no substitute for having a well-developed and tested disaster recovery plan in place before chaos hits, says Campaneria-Villarini. Key components include:
- Maintain updated contact information for all employees to ensure reliable communication during and after an incident.
- Maintain updated contact information for key suppliers, including your insurance agent and financial institution representative(s). (Read on for more advice below.)
- Ensure you have an alternative communication method, such as a satellite phone, two-way radio, or offline messaging application, to stay connected during internet and cellular outages. These tools allow you to proactively reach out to critical contacts, rather than waiting to be contacted.
- Implement robust data backup strategies to protect sensitive records and financial information, ensuring continuity and security in the event of disruption.
- Establish alternative operational procedures, such as backup payment terminals to continue accepting payments during a power or network outage.
2. Develop a list of trusted suppliers.
In the aftermath of a disaster, urgency can cloud judgement, making it easier to fall victim to fraudulent or unethical contractors. Campaneria-Villarini points out that one way to reduce risk is by working with suppliers already vetted by your insurance company. These pre-approved vendors have typically been screened for reliability, licensing and compliance. Reach out to your insurance provider in advance to request a list of authorized contractors in your area and when it comes time to pay, always use a credit card, rather than a check to add a layer of protection and make it easier to dispute fraudulent charges if necessary.
3. Reach out proactively for services.
Whether it’s a government grant or disaster relief grant or support from a nonprofit like the American Red Cross, it’s critical to go directly to the official websites for accurate information. Legitimate organizations typically do not reach out to individuals unsolicited, so if you receive a random call, text or email, offering aid, be cautious, says Campaneria-Villarini. It could be a scam designed to collect sensitive information or upfront fees.
Be cautious with crowdfunding requests, especially those shared through social media or text. In the aftermath of a disaster, fraudulent campaigns often surface, claiming to support local victims or recovery efforts. If you are inclined to help, avoid responding to unsolicited requests and instead donate through established channels of official relief organizations, she says.
4. Rely on your banker.
After ensuring the safety of your employees and physical location, your next call should be to your bank, says Campaneria-Villarini. “Confirm that you have your banker’s updated contact information, including email, direct line and mobile number and ensure they also have your current details on file.” While many businesses manage everything online, there are times, especially after a disaster, when digital systems may be down or extra verification is needed. In those moments, having a trusted banking contact, can be essential and access to a real person who knows your business can make a significant difference.
Your banker can provide a wide range of aid, such as:
- Direct you to operational ATMs or branches to ensure access to emergency cash
- Adjust account settings or temporarily lock access if suspicious activity is detected
- Proactively alert you to unusual account behavior
5. Use your intuition
“Bottom line: be highly wary of any offer that seems too good to be true” says Campaneria-Villarini. “In my long experience investigating fraud, victims often later admit they had a gut feeling something was off but chose to ignore it. And they’re far from alone. So, if something doesn’t feel right, pause, verify, question and don’t rush into it”.
Weathering the Storm Together
Not all banks are created equal, and BankUnited is uniquely positioned to support businesses affected by hurricanes, says Campaneria-Villarini. “Because we’re based in Florida, we understand the risks that come with hurricanes, including disaster-related fraud. But since our operations are spread across multiple regions, we have teams in place who remain functional and ready to assist clients when local disruptions occur.” “We’re often the ones reaching out to clients after a storm to check in and ask what they need,” says Campaneria-Villarini.
That level of proactive support isn’t something every bank offers, but it’s the kind of personalized service BankUnited is known for.” With a centralized fraud division staffed by trained fraud analysts and Investigators who work closely with the business lines, BankUnited provides a coordinated and knowledgeable response when clients report unusual activity
”If you notice unusual transactions, don’t wait, call us right away,” she advises. “We can begin investigating immediately and help protect your account, often faster than waiting for law enforcement. Our structure allows us to respond quickly and efficiently, so you’re not repeating your story to multiple departments or getting lost in the shuffle.”
“Our ability to respond quickly and effectively is rooted in the team’s deep industry experience, professional certifications, and exposure to a wide range of complex fraud cases, not just at BankUnited, but throughout their careers. That collective knowledge has helped us build a strong foundation for when it matters most.”
Strategic preparation for hurricane season, paired with the right banking partner, can make all the difference in your organization’s ability to recover, move forward and stay resilient through the uncertainty.
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All content is for informational purposes only and does not constitute legal, tax, or accounting advice. You should consult your legal and tax or accounting advisors before making any financial decisions.