Natural disasters can have devastating effects on individuals and communities, not only in terms of physical damage but also in terms of financial security. A recent survey conducted by the Harris Poll for the American Institute of CPAs (AICPA) has shed light on the prevalence of fraudulent activities following natural disasters in the United States.
According to the survey, 37% of Americans have reported encountering fraudulent activities after experiencing personal or professional impacts from natural disasters. The most common types of fraud reported include identity theft, government assistance fraud, loan scams, vendor fraud, utility scams, charity fraud, insurance fraud, and contractor fraud.
The survey also revealed that residents in the north-east and south regions of the country are more susceptible to fraud, with 40% reporting fraudulent activities compared to 31% in the Midwest. Furthermore, 48% of Americans do not have personal insurance coverage for fraud-related losses during disaster recovery, highlighting the need for increased awareness and protection.
In contrast, 39% of respondents have insurance coverage for fraud-related losses, while 13% are uncertain about their coverage. Among business owners, 64% have insurance protection against fraud-related losses, while 32% do not, with 4% unsure.
Christine Cutti-Fox, director of forensic & technology advisory services at AICPA, emphasized the importance of staying informed and developing a comprehensive plan supported by appropriate documentation to facilitate effective recovery from fraud-related losses following natural disasters. It is essential for individuals, families, and business owners to be vigilant and proactive in protecting their financial interests.
In addition to the survey findings, the AICPA has also called for enhanced tax relief measures for those affected by natural disasters. The organization highlighted the public preference for extending IRS tax relief measures beyond initial emergency declarations, with 35% of respondents valuing extended tax filing and payment relief periods post-disaster.
The survey further revealed that nearly 32% of Americans have not taken steps to protect their financial interests against disasters, underscoring the need for increased awareness and preparedness. Additionally, 29% of participants suggested that IRS tax filing extensions in disaster scenarios would be advantageous in mitigating financial losses.
Overall, the survey results emphasize the importance of being proactive in safeguarding against fraud and financial losses following natural disasters. By staying informed, developing a comprehensive plan, and seeking professional advice when needed, individuals and businesses can better protect themselves and recover effectively in the aftermath of a disaster. The original article “AICPA survey shows 37% of Americans face fraud post-disaster” was published by The Accountant.
