$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
flood insurance scam
After a natural disaster, scammers pose as FEMA or NFIP representatives and sell fake flood insurance policies or charge fees for free disaster assistance.
“insurance scam”
↑ 100%Key indicators
Usually targetsHomeowners
Often hitsReal estate professionals and homebuyers
Common regionUnited States
Last updated2026-04-04
Estimated impact
$960
median reported loss
Typical range$60 – $6.0K
Recovery rate~15%
Scam breakdown
1
Scammers monitor disaster declarations and target affected areas with calls and door-to-door visits.
2
They pose as government officials or insurance adjusters offering urgent flood coverage.
3
Victims pay for policies that are worthless or for FEMA services that are provided at no cost.
What to do first
FEMA does not charge for disaster assistance — any request for payment is a scam.
Related terms
fake FEMA flood insurancedisaster insurance scampost-flood policy scamInsurance scamsPhoneRisingHomeownersDisaster victimsFlood zone residentsReal estate professionals and homebuyersRetirees and seniorsImmigrants and visa holdersUnited Statesfake FEMA flood insurancedisaster insurance scam
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Jessica, 42, a homeowners, encountered what appeared to be a legitimate insurance scams situation while using Phone. Scammers monitor disaster declarations and target affected areas with calls and door-to-door visits.
Step 2
What happened next was calculated: They pose as government officials or insurance adjusters offering urgent flood coverage.
Step 3
The pressure escalated quickly: Victims pay for policies that are worthless or for FEMA services that are provided at no cost.
The outcome
Jessica realized something was wrong when caller claims to represent fema and requires payment for assistance that is actually free. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
FEMA does not charge for disaster assistance — any request for payment is a scam. Jessica's experience shows why caller claims to represent fema and requires payment for assistance that is actually free and policy is sold outside the national flood insurance program without proper disclosure are the clearest early warning signs.
How to identify it
- Caller claims to represent FEMA and requires payment for assistance that is actually free
- Policy is sold outside the National Flood Insurance Program without proper disclosure
- Agent pressures purchase immediately after a storm before you can verify credentials
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓FEMA does not charge for disaster assistance — any request for payment is a scam.
- ✓Purchase flood insurance only through NFIP or a licensed insurance agent.
- ✓Report disaster-related fraud to the FEMA Disaster Fraud Hotline.
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
- ✓Save the full chat or call log before blocking the sender so the reporting path still has the original context.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- FEMA and the National Center for Disaster Fraud have documented spikes in insurance fraud following every major hurricane and flood event.
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Tell close contacts if a phone or text scam used your identity, so scammers cannot reuse the same story against people around you.
- ✓FEMA does not charge for disaster assistance — any request for payment is a scam.
- ✓Purchase flood insurance only through NFIP or a licensed insurance agent.
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
FEMA and the National Center for Disaster Fraud have documented spikes in insurance fraud following every major hurricane and flood event.
FBI IC3 2024
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Homeowners, Disaster victims, Flood zone residents
Geographic concentration
United States
Primary channel
Phone — Insurance scams
Why this group is vulnerable
Homeowners are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The growing number of reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- FEMA and the National Center for Disaster Fraud have documented spikes in insurance fraud following every major hurricane and flood event.
Source notes
- FBI IC3 2024
Frequently asked questions
Common questions about flood insurance scam
How does the flood insurance scam work?+
Scammers monitor disaster declarations and target affected areas with calls and door-to-door visits. They pose as government officials or insurance adjusters offering urgent flood coverage. Victims pay for policies that are worthless or for FEMA services that are provided at no cost.
What are the warning signs of flood insurance scam?+
Caller claims to represent FEMA and requires payment for assistance that is actually free Policy is sold outside the National Flood Insurance Program without proper disclosure Agent pressures purchase immediately after a storm before you can verify credentials
What should I do if I encounter flood insurance scam?+
FEMA does not charge for disaster assistance — any request for payment is a scam. Purchase flood insurance only through NFIP or a licensed insurance agent. Report disaster-related fraud to the FEMA Disaster Fraud Hotline.
Who is most at risk for flood insurance scam?+
This scam primarily targets Homeowners, Disaster victims, Flood zone residents. It is most commonly reported in United States and typically appears on Phone.
Is flood insurance scam on the rise?+
flood insurance scam is currently on the rise with growing reports. It has been reported across US. Last updated 2026-04-04.
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.