Last year was a historic one for billion-dollar weather and climate disasters in the U.S., with 28 separate events costing at least $1 billion each. In the 1980s, the average time between billion-dollar disasters was 82 days. In 2023, it was just 12 days.

These catastrophic events leave millions of Americans struggling to recover and rebuild their lives, and when repairs or renovations are needed, the process can often feel overwhelming. Unfortunately, disreputable contractors often swoop in after these catastrophic events, preying on desperation with high-pressure tactics and promises of quick fixes, which can leave homeowners financially and emotionally drained.

Contractor fraud is a pervasive issue that not only undermines trust within communities but also inflicts significant financial and emotional harm on families across America. With the promise of renovations, repairs, or construction projects, fraudulent contractors exploit the vulnerabilities of unsuspecting homeowners, leaving behind a trail of broken promises, shoddy workmanship, and depleted savings. 

This type of fraud not only affects individual homeowners, but also impacts insurance premiums throughout the industry and costs Americans billions of dollars every year.

To combat this growing problem, the National Insurance Crime Bureau partners with government agencies and its member insurance carriers to educate homeowners and businesses on how to avoid becoming a victim of deceptive contractors after a natural disaster as part of its annual Contractor Fraud Awareness Week, which just ended.

Contractor fraud is a crime that thrives in the shadows. By arming ourselves with knowledge, vigilance, and a healthy dose of skepticism, we can protect our homes and our hard-earned money. Luckily, there are important steps every homeowner can take to protect themselves from contractor fraud:

• Be Wary of High-Pressure Sales: Legitimate contractors understand the value of informed decisions. A contractor demanding an immediate decision or offering a “limited-time” discount is likely using a scare tactic.
• Do Your Research: Never hire the first contractor you meet. Seek referrals from friends, family, and neighbors. Verify licenses and insurance with the state licensing board. Tools like the Better Business Bureau can reveal a contractor’s complaint history.
• Seek Multiple Bids: Don’t settle for a single estimate. Obtain bids from at least three qualified contractors with a detailed breakdown of costs and materials.
• Get a Signed Contract: A verbal agreement is worthless in case disputes arise. Every detail — scope of work, materials list, payment schedule, completion timeline, and warranty information — should be outlined in a signed contract.
• Beware of Upfront Payments: Being required to make a significant upfront payment by a contractor is a red flag. Consider a reasonable down payment, with progress payments tied to completed milestones. Never pay the full amount until the project is finished to your satisfaction.
• Watch for Red Flags and Trust Gut Feelings: Unethical contractors often exhibit telltale signs. Be wary of contractors who lack a permanent address, offer unusually low bids, or pressure you to use their financing. Finally, trust your gut. If something feels off, it probably is.
• Contact Your Insurance Carrier: Contact your insurance company before hiring a contractor, especially after a disaster. They may have a list of pre-approved vendors or offer guidance. Furthermore, understand your insurance coverage regarding repairs and replacements.
• Educate Yourself on Projects: Educate yourself about the specific project you’re undertaking. This basic understanding allows you to ask informed questions and scrutinize proposed solutions. Resources like local building departments offer valuable information on permits and regulations.
• When in Doubt, Walk Away: Don’t be pressured into signing a contract you’re uncomfortable with. A reputable contractor will respect your right to due diligence. Don’t hesitate to walk away and seek a more trustworthy professional.
• Report Fraud: If you suspect contractor fraud, report it to your state licensing board, the BBB, and law enforcement. You can also contact NICB to report fraud by calling toll-free 800.835.642).

Homeownership is often viewed as a cornerstone of the American Dream. By taking steps to deter contractor fraud, we can ensure that it does not become the American nightmare.

David J. Glawe is the president and CEO of the National Insurance Crime Bureau, a not-for-profit organization dedicated to combatting and preventing insurance crime. He is a former U.S. Under Secretary of Homeland Security for Intelligence and Analysis.

As Americans, we love our cars. They provide us with freedom, mobility, and perhaps most importantly, opportunity. They allow us to travel to our jobs, attend our schools, and visit our families. Unfortunately, though, thieves do not care if a single parent needs a car to get to work or a family needs their vehicle for daily activities.

California led the nation last year with more than 200,000 vehicles stolen. California and the nation at large are seeing the highest vehicle theft numbers since 2008. On top of that, the frequency of vehicle thefts in the state are still on the rise year over year.

From 2021 to 2022, California suffered 1% more of these unfortunate, but preventable crimes. Because of this, the National Insurance Crime Bureau is partnering with the National Highway Traffic Safety Administration to warn about the threat of vehicle theft as part of Vehicle Theft Prevention Month in July.

Vehicle theft is a multi-billion-dollar industry in the United States. According to data analyzed by NICB, more than one million vehicles were stolen in the U.S. last year, accounting for a huge increase in vehicle theft totals over the previous few years. Sadly, these statistics show that one motor vehicle is stolen approximately every 32 seconds.

Vehicle theft disrupts lives, causes financial hardship, and undermines community safety. Addressing this problem is not just the responsibility of law enforcement agencies; it requires a partnership between vehicle owners, community members, as well as federal, state, and local governments. By working together, we can build stronger communities where everyone feels secure and personal property is protected.

Effective prevention begins with education, such as the importance of parking in secure locations, and the benefits of utilizing anti-theft devices. Empowering vehicle owners with information and education allows them to take proactive measures to safeguard their assets. 

Common sense tips include parking in well-lit areas, and closing and locking all windows and doors when you park. Hiding valuables out of sight, such as in the glove box or trunk and never leaving your keys in your vehicle. If your vehicle is stolen, it is important to call law enforcement and your insurer immediately because reporting a vehicle as soon as possible after it is stolen increases the chance of recovery.

At the same time, new advancements in technology offer significant opportunities to curb the rise in vehicle thefts. Vehicle manufacturers are continuously improving anti-theft systems, including immobilizers, GPS tracking devices, and encrypted key codes. This new technology can assist investigators as they recover stolen vehicles and catch these thieves, and if integrated with law enforcement databases, can provide authorities with immediate alerts.

Additionally, public awareness campaigns, neighborhood watch programs, and educational classes build important connections between law enforcement and the communities they serve. These partnerships can also form a network of support that works to deter criminals and recover stolen vehicles promptly.

Comprehensive legislation focused on auto theft prevention is also essential to combating this surge in vehicle theft. Stricter penalties for offenders, effective deterrence strategies, and targeted enforcement initiatives can make a huge difference. Lawmakers, law enforcement agencies, and community advocates must work together to develop policies that address the root causes of auto theft and implement effective prevention measures.

By raising awareness, promoting education, strengthening community ties, and leveraging technological advancements, we can create a culture of prevention, ensure the safety of our vehicles, and protect our neighborhoods.

David J. Glawe is the president and CEO of the National Insurance Crime Bureau, a not-for-profit organization dedicated to combatting and preventing insurance crime. He is a former U.S. Under Secretary of Homeland Security for Intelligence and Analysis.