More than One-Third of Americans Have Experienced Fraudulent Activities After Being Affected by a Disaster Says AICPA Survey

Identity theft, government assistance fraud and loan scams were experienced by respondents.

WASHINGTON, July 25, 2025 /PRNewswire/ -- Thirty-seven percent of Americans have experienced fraudulent activities after being personally and/or professionally impacted by a natural disaster, according to a recent survey conducted by The Harris Poll on behalf of the American Institute of CPAs (AICPA).

When asked what types of fraud they had experienced, they reported:

• Identity theft - 14%
• Government assistance fraud – 11%
• Loan scams – 11%
• Vendor fraud – 10%
• Utility scams – 10%
• Charity fraud – 10%
• Insurance fraud – 10%
• Contractor fraud – 8%

The survey also found that those in the Northeast (40%) and South (40%) were more likely to have experienced fraudulent activities as a result of being personally or professionally affected by a natural disaster than those in the Midwest (31%).

"In the aftermath of a natural disaster, you may see many individuals show positive behaviors, but you may also see unexpected negative behaviors," states Christine Cutti-Fox, Director of Forensic & Technology Advisory Services at AICPA. "Fraud can manifest in various ways, and whether you are dealing with the impact as an individual, family, or business owner, it is essential to stay informed and develop a comprehensive plan supported by appropriate documentation to facilitate effective recovery."

Insurance Coverage for Fraud

The survey found that 48% of Americans said their personal insurance coverage doesn't include protection against fraud-related losses during disaster recovery. Thirty-nine percent said their personal insurance coverage includes protection against fraud-related losses during disaster recovery and 13% weren't sure.

Meanwhile, 64% of business owners say they have insurance coverage that includes protection against fraud-related losses during disaster recovery, 32% don't have insurance coverage that includes protection against fraud-related losses during disaster recovery and 4% were not sure.

"Fraud-related insurance coverage serves as a safeguard for financial security, offering protection against unforeseen incidents. It can provide coverage for a range of fraudulent activities, including identity theft, cyber threats, insurance claims fraud, and employee dishonesty," Cutti-Fox continued.

The AICPA's forensic and valuation services offers tips to help those impacted by a disaster avoid becoming further victimized by bad actors:

Fraud Prevention Tips

• Identify trustworthy contracts prior to needing them and keep their information handy.
• Ask for identification and verify any contractor, government official or charity worker that contacts you. Confirm their credentials by searching on the web for the business/agency they claim to be from and call them directly to verify.
• Before hiring a contractor, ask for their business license and verify that there are no violations and that they hold the proper insurance for the work you may hire them to perform. Avoid doing business with or giving personal information to individuals selling services door-to-door.
• Obtain a written contract for all contracted services that outline specifically what you and the contractor have agreed to. This helps protect you from fraud and any misunderstandings.
• Final payment should be made once all the work is done to your satisfaction. Avoid paying for services using wire transfer, gift cards or cash. Fraudsters may ask to be paid in ways that can't be traced, leaving you with no way to prove the fraud.
• Compare prices and beware of price gouging. Fraudsters may exploit disastrous situations by overcharging for services or materials.
• Before donating to charitable organizations, verify that they are reputable and legitimate.

CPAs play a critical role in disaster planning, relief and recovery — helping individuals and businesses navigate financial and tax challenges. To create this wholistic approach, the AICPA provides tools and resources for disaster preparedness and planning; tax relief through advocacy and services; and recovery support and resources through fraud detection and prevention as well as business interruption for CPAs and their clients once a disaster has occurred.

Find AICPA/Harris Poll survey data regarding disaster planning as well as examples of planning advice here. Find AICPA/Harris Poll survey data regarding disaster tax relief as well as post-disaster tax advice here.

Survey Method:

This survey was conducted online within the United States by The Harris Poll on behalf of AICPA from June 13 - 17, 2025 among 2,093 adults ages 18 and older, among whom 284 currently own a business (i.e., business owners). The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level.

About the American Institute of CPAs

The American Institute of CPAs^® (AICPA^®) is the world's largest member association representing the CPA profession, with 397,000 members and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education, and consulting. A founding member of the Association of International Certified Professional Accountants, the AICPA sets ethical standards for the profession, attestation standards, and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state, and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, partners across the profession to build future talent, and drives continuing education to advance the vitality, relevance, and quality of the profession.

SOURCE AICPA