NICB Warns Residents About Potential Contractor Fraud After Tornados in Missouri and Ohio Valley

OAK BROOK, Ill., May 20, 2025 /PRNewswire/ -- Tornados in Missouri and the Ohio Valley have resulted in homes, schools and businesses being destroyed or severely damaged. In response to this catastrophic weather event, the National Insurance Crime Bureau (NICB), the nation's leading non-profit association dedicated to preventing insurance fraud and crime, is warning residents and business owners about potentially fraudulent contractors who prey on consumers in disaster areas.

NICB agents are currently coordinating with local, state and federal law enforcement agencies, as well as NICB member insurance companies, to aid in the recovery process and support residents in preventing fraud. As first responder efforts subside, NICB agents will deploy in the region to assist our partners in combating any fraud that arises as the rebuilding process begins.

"Spring weather systems can result in the catastrophic weather event people in Kentucky, Missouri and the Ohio Valley are experiencing with these tornados," said Thomas Fabus, regional director, at NICB.  "It is crucial for area residents to be mindful that some contractors may promise help, ask for the assignment of benefits, and after being paid, disappear, never to be heard from again. Knowing the warning signs of potentially untrustworthy contractors can protect vulnerable citizens and deter this type of crime."

Fraud schemes may come from companies or individuals promising debris and tree removal, home construction and medical services. NICB urges affected residents to do their due diligence, check in with their insurance carrier and verify the credentials of anyone they plan to hire for a service. 

Common red flags include high-pressure sales tactics via door-to-door solicitation, online or by phone. Additionally, pushing residents to sign contracts on the spot – often with multiple blank spaces in them – demanding payment upfront, and even requiring an Assignment of Benefits agreement which transfers insurance rights to the contractor can be signals to double check credentials and credibility.

NICB offers consumers a free downloadable contractor checklist available via this link: https://www.nicb.org/media/2509/download/. Other best practices include:

Before a disaster 

• Understand what's covered in your insurance policy
• Get a list of reputable contractors from your insurance carrier

After a disaster 

• Don't succumb to pressure from a contractor
• Be wary of door-to-door contractors
• Call your carrier or BBB to verify contractor
• Get multiple bids for work
• Never pay cash up front
• Never accept a verbal agreement

Additional resources and information can be found by visiting NICB.org or to report potential fraud call NICB's hotline at 1-800-TEL-NICB.

About the National Insurance Crime Bureau: Headquartered in Oak Brook, Ill., the National Insurance Crime Bureau (NICB) is the nation's leading not-for-profit organization exclusively dedicated to combatting and preventing insurance crime through Intelligence, Analytics, and Operations; Education and Crime Prevention; and Strategy, Policy, and Advocacy. NICB is supported by more than 1,200 property and casualty insurance companies and self-insured organizations. To learn more, visit NICB.org.

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SOURCE National Insurance Crime Bureau (NICB)