Calamity criminals: Natural catastrophe and disaster fraud

Disasters bring out the best and, of course, the worst in people. Catastrophic events are a beacon for opportunistic predators. Here are the latest schemes, conditions for fraud, and prevention and detection methods.

Shortly after Hurricane Katrina, two culprits - masquerading as Salvation Army workers - conned more than 2,500 police officers, firefighters, sheriff's deputies, and FBI agents into disclosing personal information. The two, Scott Benson of Green Bay, Wis., and Chris Armstrong of Orlando, Fla., were charged with false impersonation and conspiracy to commit identity theft.

Katrina. Asian tsunami. Pakistani earthquake. Spain and England terrorist attacks. And 9/11. At the beginning of this new century, we've seen an increase in national and manmade disasters. These tragedies have brought neighbors and nations together. But catastrophic events are also a beacon for opportunistic predators and a magnet for various forms of deception for dishonest gain.

Types of disaster fraud

Disaster fraud, which we'll define as a deliberate act to defraud individuals or the government after a catastrophe, can be divided into five primary categories: charitable solicitations, contractor and vendor fraud, price gouging, property insurance fraud, and forgery.