NICB Warns Consumers About Contractor Fraud After Wildfires Start in Oklahoma

OAK BROOK, Ill., March 21, 2025 /PRNewswire/ -- Wildfires caused by dry conditions and high winds in Oklahoma have resulted in hundreds of homes, schools and businesses being destroyed or severely damaged. In response to these catastrophic weather events, 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 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 Oklahoma is experiencing with these wildfires," said Niambi Tillman, regional director, at NICB. "It is crucial for local residents to be aware 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 local 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. 

Best Practices for Deterring Contractor Fraud

1. Contact your insurance company immediately about damaged property.
   
   1. Ensure that you understand all documents related to your claim and consult your insurance carrier before making any decisions.
2. Obtain multiple bids and estimates; verify contractors.
   1. Obtain multiple estimates to compare prices and services.
   2. Request references and conduct background checks on the contractor.
   3. Verify the contractor's identity by asking for their driver's license and recording their license number and vehicle plate.
   4. Be cautious of out-of-state licenses and vehicle registrations, which may indicate potential fraud.
   5. Do your own research and inquiries through your state licensing agencies and the Better Business Bureau.
3. Scrutinize all offers and contracts.
   1. Avoid contractors who pressure you into immediate decisions or signing contracts on the spot.
   2. Get all agreements in writing, including costs, work to be done, timelines, and payment schedules.
   3. Do not sign contracts with blank spaces; these can be filled later with terms you did not agree to.
   4. Be cautious of signing an Assignment of Benefits agreement, which could transfer your insurance rights to a contractor.
   5. Never pay the full amount upfront or sign a completion certificate until you are satisfied that the work is finished.
4. Report suspicious activity immediately.
   1. If something seems off or you suspect fraud, report it to law enforcement and your insurance company immediately.
   2. Avoid sharing personal information over the phone, especially with callers claiming to represent a national company.

Additional resources and information can be found by visiting NICB.org or calling 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)