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From an act of God to an act of fraud, a California homeowner’s story stands as a warning about how scammers prey on victims of natural and climate disasters.
When Altadena resident Pamelia Lawson suffered damage to her home following last January’s deadly Southern California Eaton wildfires, an unlicensed builder offered to make the necessary repairs for her, according to a report from Los Angeles’ local NBC4 news outlet (1).
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Lawson told NBC4 that she took him up on it and paid the man $18,000, but that the work allegedly remained incomplete while the builder disappeared with the cash.
“I think I was totally taken advantage of,” she added.
Unfortunately, such situations are not uncommon.
Loretta Worters of the Insurance Information Institute told Moneywise that the “tremendous stress” homeowners face to rebuild quickly following a natural disaster, combined with a shortage of qualified contractors in a disaster area, can create a perfect storm that allows scammers to cash in.
“Fraudsters often exploit the urgency of the situation by promising immediate repairs, pressuring homeowners to sign contracts on the spot or claiming they have limited availability,” Worters explained. “People who have experienced significant property damage may feel they have little time to research contractors or compare estimates, making them more vulnerable to scams.”
And when homeowners fall prey, the scammers often leave them with both a damaged property and a massive hole in their bank account.
Taking advantage of disaster victims
According to the NBC4 report, Lawson eventually spent around $50,000 to repair her home, with the help of a non-profit organization, though there’s no confirmation that she ever recovered her $18,000.
Meanwhile, contractor scams extend across the U.S.
According to the National Insurance Crime Bureau (NICB), contractor fraud reports nationwide jumped nearly 40% between 2023 and 2025 (2).
And perhaps that’s no surprise, given that the price tag for damages caused by U.S. climate and weather disasters totalled $115 billion last year alone, including $61 billion in damages for the Los Angeles wildfires (3) alone.
In December, the Los Angeles County District Attorney announced the arrests of five unlicensed contractors in the Eaton Fire zone (4), followed by levying charges against six more who allegedly placed $1.27 million in illegal work bids in the Palisades Fire disaster zone (5).
NICB representative Nicholas Zeitlinger told Moneywise that scammers often make claims that they’re associated with FEMA or national insurance carriers, “deceptively” interpret a homeowner’s insurance policy and even discourage them from reaching out to their insurance company.
Fraudsters may also “offer to manipulate the price to cover your deductible or extra work not caused by the catastrophe,” Zeitlinger added. “This is insurance fraud, and insurance fraud is a felony.”
Worters, meanwhile, warned of scammers who show up after a storm, going door-to-door and offering steep discounts in return for a quick signature.
“We see this a lot after hailstorms,” she said. “Sometimes, even if there wasn’t damage, these fraudulent contractors have gone on a roof and actually damaged the roof and then showed the homeowner that there was damage.”
She also flagged the use of vague or blank contracts, refusing to show their proof of license or requesting large upfront payments as warning signs that you could be dealing with fraudulent behavior.
How to protect yourself against fraudulent contractors
While it can be difficult — especially in the midst of a disaster, to spot a scammer, Worters and Zeitlinger offer some best practices to help identify fraudulent contractors, hire a proper professional and, of course, protect your pocketbook.
When it comes to choosing a contractor, both recommend getting multiple written quotes to compare prices, checking contractor licenses and references and never paying in full before the job is done.
In fact, when it comes to down payments, many states actually cap the amount a contractor can request. California and Ohio, for example, cap them at 10% of the overall job cost, while Maryland, Maine and others set the limit at one-third of the cost (6). It’s important to know what your state law says before any money changes hands.
The pair also emphasize the importance of reading all contracts thoroughly before signing, with Zeitlinger adding to never sign a contract that includes blank spaces because “terms you don’t agree with can be added later.”
Worters noted you can also contact your insurance company with any additional questions.
Both stress the importance of documenting all communications and payments with the contractor as well, including photos of the work progress — especially in the event that you discover you’ve fallen victim to a scam.
If that’s the case, Worters says to contact local authorities, your insurance company and organizations like the NICB to report suspected fraud, gathering your documentation and immediately stopping any payments. You may also have to hire a reputable contractor to assess any damage and potentially finish the job.
“Acting quickly can help prevent additional property damage,” she noted, “and may improve the chances of recovering losses through legal or insurance channels.”
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Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
NBC Los Angeles (1); National Insurance Crime Bureau (2); Climate Central (3); Los Angeles County District Attorney's Office (4), (5); Legal Clarity (6)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
