Financial Preparedness: FEMA’s Emergency Financial First Aid Kit (EFFAK) and How to Avoid Common Scams After a Disaster

We often stock pile food and supplies for an emergency but rarely do we think of the financial impact of emergencies. According to FEMA 91% of people who experience a disaster report having a financial impact. FEMA’s Emergency Financial First Aid Kit (EFFAK) is a tool created help individuals and families prepare for this type of situation. This comprehensive document provides guidance on organizing important financial information and documents, making a plan for financial recovery after a disaster, and protecting oneself from financial scams and frauds.

Financial emergencies can occur at any time, and they can be caused by a variety of reasons such as natural disasters, job loss, medical emergencies, and unexpected expenses. These emergencies can quickly deplete savings, damage credit scores, and disrupt daily life. Therefore, having a plan in place to deal with financial emergencies is crucial.

What is EFFAK?

EFFAK provides a framework for individuals and families to prepare for financial emergencies. The kit includes a list of important financial documents, such: household identification; financial and legal documentation; medical information insurance information and household contacts. Once the kit is filled out it should be kept in a secure and easily accessible location with all the other important documents. This ensures that essential information is readily available in case of an emergency.

EFFAK provides links to support sites such as ready.gov and money.gov.These links provide more information concerning how to create a household budget, build an emergency fund, and manage debt. These steps can help individuals and families prepare for financial emergencies and minimize the impact of unexpected expenses on their finances.

Common Scams & How to Avoid Them

EFFAK also provides tips on protecting oneself from financial scams and frauds, which can be particularly prevalent after a disaster. Scammers may try to take advantage of vulnerable individuals by offering fake services or asking for personal information. By following the advice provided in EFFAK, individuals can protect themselves from these scams and avoid further financial harm.

Common scams after a disaster:

1. Phishing Scams: Scammers may send fraudulent emails or text messages that appear to be from legitimate organizations, such as banks or insurance companies, in an attempt to obtain personal or financial information.
2. Fake Charities: Scammers may set up fake charities or solicit donations for legitimate organizations in an effort to steal money or personal information.
3. Contractor Fraud: After a disaster, scammers may pose as contractors or repair companies and offer to make repairs or provide services, only to take money and disappear without completing the work.
4. Price Gouging: Some businesses may raise prices on essential goods and services, such as food and water, during and after a disaster, taking advantage of the scarcity of these items.

How to avoid scams:

Protecting oneself from common scams requires a combination of awareness, caution, and action. Here are some tips on how to protect yourself from the common scams mentioned above:

1. Phishing Scams: Be cautious of unsolicited emails or text messages that ask for personal or financial information. Legitimate organizations typically do not ask for sensitive information via email or text. Verify the legitimacy of the request by contacting the organization directly through a trusted source, such as their official website or customer service line.
2. Fake Charities: Before donating to a charity, do your research to ensure that it is a legitimate organization. Check to see if the charity is registered with the relevant government agencies and if it has a good reputation. Do not donate to a charity that you are unfamiliar with or that you cannot verify.
3. Contractor Fraud: Before hiring a contractor or repair company, do your research to ensure that they are reputable and licensed. Get multiple quotes from different companies and ask for references. Do not pay for services upfront or in full before the work is completed. Verify that the contractor has insurance and that they are registered with the relevant government agencies.
4. Price Gouging: Be aware of the prices of essential goods and services before a disaster occurs, so that you can recognize when prices are being inflated. Report any instances of price gouging to the relevant authorities.

Additionally it is important to keep your personal and financial information secure. Use strong passwords and enable two-factor authentication on your accounts. Do not share personal information, such as your Social Security number or credit card information, with anyone you do not know or trust. If you encounter an individual or situation that causes you concern or seems suspicious, you should immediately report the matter to local authorities or to the National Center for Disaster Fraud at (866) 720–5721

Final Thoughts

Financial preparedness is one aspect of being prepared. The EFFAK is one tool that can get you pointed in the right direction. By taking the steps outlined in the kit, individuals and families can minimize the impact of unexpected expenses on their finances, protect themselves from financial scams and frauds, and ensure that important financial information is readily available in case of an emergency. Check out the additional links below for more information on financial preparedness.

Additional Helpful Links
American Red Cross: www.redcross.org
Federal Disaster Assistance: www.disasterassistance.gov
Extension Disaster Education Network: www.EDEN.lsu.edu
Financial Preparedness (Ready.gov): www.ready.gov/financialpreparedness
HOPE Coalition America (Operation HOPE): www.operationhope.org
Financial Education: www.mymoney.gov
Small Business Administration: www.sba.gov/emergencypreparedness
GoDirect.gov: www.godirect.gov
The American Red Cross Mobile Apps: http://www.redcross.org/get-help/how-to-prepare-for-
emergencies/mobile-apps
Avoiding Loan Scams After a Natural Disaster (Consumer Financial Protection Bureau):
http://www.consumerfinance.gov/blog/avoiding-loan-scams-after-a-natural-disaster
CFTC Fraud Advisories: False Promises of Profits as a Result of Natural Disasters (U.S. Commodity
Futures Trading Commission):
https://www.cftc.gov/ConsumerProtection/FraudAwarenessPrevention/CFTCFraudAdvisorie
s/fraudadv_falesprom.html
Computer Security (FTC): http://www.consumer.ftc.gov/topics/computer-security
Disaster Financial Recovery Score (Operation HOPE): http://dfrscore.org/
Disaster Recovery Log (North Dakota State University):
http://www.ag.ndsu.edu/extension/apps/disaster-recovery-journal
Disaster Survivor Application Checklist (FEMA): https://www.disasterassistance.gov/get-
assistance/application-checklist
Find out your financial well-being (Consumer Financial Protection Bureau):
https://www.consumerfinance.gov/consumer-tools/financial-well-being/
IS-909: Community Preparedness: Implementing Simple Activities for Everyone (FEMA; also available
in Spanish): https://training.fema.gov/is/courseoverview.aspx?code=is-909
Protecting Your Identity (FTC): http://www.consumer.ftc.gov/topics/protecting-your-identity