Post-flood: beware fundraising scammers empowered by AI

AUSTIN (KXAN) – The Texas Office of Attorney General has received hardly any reports of price gouging related to the Independence Day flooding. However, as recovery efforts ramp up across Central Texas and the Hill Country, state officials and consumer advocates continue warning the public about disaster profiteers, scammers and fraudulent charities.

The OAG’s office received just one report of price gouging – a gas station near Kerrville raising prices by 50 cents – in the days following widespread flooding mayhem that left 120 confirmed dead and 166 more still missing as of Friday, KXAN reported.

Deaths and missing people have been reported Kerr, Travis, Williamson, Burnet, Kendall and Tom Green counties. Those counties, and others, have been put under state and federal disaster declarations, which trigger certain consumer protections which make price gouging illegal.

As news of the devastation has spread, so has the outpouring of support and donations.

For example, Community Foundation of the Texas Hill County – a legitimate and transparent nonprofit – announced $30 million received in the Kerr County Flood Relief Fund in just six days. Through grants, $5 million is being sent down to organizations to be disbursed to “individuals and families, local businesses, first responders and crisis response,” according to the organization.

Not all fundraising efforts are legitimate, though. Price gouging aside, officials say fundraising frauds could be lurking. Texas Attorney General Ken Paxton said now is the time be vigilant for “bad actors trying to take advantage of this tragedy.”

Scammers tap AI

Jason Meza, a senior director of communications with the Better Business Bureau, told KXAN that scammers are using artificial intelligence to work faster.

“AI is allowing cyber criminals the advantage of now speeding up that process of creating profiles bots that are chatting,” Meza said. “As soon as they go up or established the profiles and put them on these platforms, they're quickly taken down, and they’re just moving onto another. They migrate so fast.”

Fraudsters are cloning fundraising pages and replacing bank account links. They are hijacking the comment sections on Meta stories to divert would-be donors and misdirect money to fraudulent bank accounts, Meza said.

It’s important for people to pause before donating and triple check payment sites and links to ensure they are directed to right place. If something seems amiss, consumers can call fundraisers or direct message them and ask questions. Cyber-criminals trying to move fast aren’t going to spend time answering detailed questions or provide more information than what is already posted, Meza said.

BBB warns of emotional appeals, fundraisers using similar names to well-known charities, fundraisers that disclose little information, and requests for on-the-spot donations that pressure you to give immediately.

Scams can be reported to the BBB’s scam tracker. Consumers can also report them to the Office of Attorney General here.

The Office of Attorney General has tips and information on disaster scams here and below:

• Warning on flood-damaged cars.
• Recommendations on door-to-door contractors.

Additional tips and resources:

• Do not wire money or provide personal banking information like account, credit card or social security numbers.
• Research charities before donating. Two tools to check credentials are CharityWatch and Guidestar, which keeps IRS data on nonprofits.
• Don’t trust names or phone numbers, which can be faked.
• Watch out for text message solicitations for donations, also called “smishing.” 
• Enter your name in the Texas Do Not Call Registry (by visiting  https://www.texasnocall.com or by calling toll-free at 1-888-309-0600) and the National Do Not Call Registry, by visiting www.donotcall.gov or by calling toll-free at 1-888-382-1222 (TTY 1-866-290-4236).