Fraud Strikes Over One-Third of Americans Impacted by Natural Disasters, AICPA Survey Reveals

According to a recent Harris Poll survey conducted for the American Institute of CPAs (AICPA), over one-third of Americans (37%) who have been personally or professionally affected by natural disasters reported experiencing fraudulent activities. The most common types of fraud include identity theft (14%), government assistance scams (11%), and contractor fraud (8%). The findings underscore the persistent risks that emerge after disaster events, especially as individuals and businesses begin the recovery process.

The survey also identified regional differences, with residents in the Northeast and South (both at 40%) more likely to report fraud than those in the Midwest (31%). AICPA’s Christine Cutti-Fox emphasized the need for pre-disaster planning and thorough documentation to help reduce vulnerability to scams during post-disaster recovery.

When it comes to insurance protection, only 39% of Americans said their personal insurance covers fraud-related losses linked to disaster recovery. This contrasts with 64% of business owners who reported having such coverage. Fraud coverage can help protect against financial risks related to identity theft, insurance claims fraud, and contractor scams.

To reduce the risk of falling victim to fraud, AICPA recommends proactive steps such as vetting contractors in advance, verifying credentials, avoiding untraceable payment methods, and ensuring all agreements are in writing. The organization also highlights the role CPAs play in helping clients prepare for, respond to, and recover from disasters through financial guidance and fraud prevention strategies.