To recognize the sixth annual Contractor Fraud Awareness Week held between May 18 and 22, the National Insurance Crime Bureau is reminding homeowners and businesses to remain vigilant about the growing threat of contractor fraud following natural disasters and severe weather events.

“Severe weather events often leave communities shaken and trying to rebuild their lives as quickly as possible,” said David J. Glawe, president and CEO of NICB. “Unfortunately, criminals recognize those moments of vulnerability as opportunities for financial exploitation. As disaster damage continues to rise across the country, Americans must remain alert to the warning signs of contractor fraud.”

After six years of Contractor Fraud Awareness Week, a total of 36 states support the education of hard-hit communities about the financial harm that unscrupulous storm-chasers commit after natural disasters.

According to disaster-cost data from climate communications nonprofit Climate Central, the United States experienced 23 major billion-dollar disasters in 2025, resulting in approximately $115 billion in damages. At the same time, reported instances of contractor fraud increased 38% from 2023 to 2025.

After a disaster, storm-chasing contractors solicit homeowners in damaged neighborhoods, offering cleanup or repair services, the NICB stated. Dishonest contractors may try to pocket more profit by demanding upfront payments and then never completing the job, using inferior materials, or performing work that isn’t up to code.

“Contractors play a key role in turning disaster damage into recovery for families, businesses, and communities,” said Sean Kevelighan, CEO, Insurance Information Institute (Triple-I). “Working with qualified professionals and maintaining open communication with insurers can help homeowners and businesses recover more efficiently and strengthen communities for the future. Taking care in selecting who performs the work can help ensure repairs are completed properly and support stronger recovery outcomes.”

Immediately following a major catastrophic event, NICB agents deploy to the scene to assess damage and connect communities to the resources they need to recover. Last year, NICB agents responded to most major catastrophic events nationwide, coordinating with local, state, and federal law enforcement on relief efforts.

Contractor fraud schemes are becoming increasingly sophisticated and organized, the NICB said. The most common scams center on manufactured roof damage, inflated water mitigation claims, abuse of assignment of benefits agreements, exploitation of elderly homeowners, and falsified documentation.

To support the industry in combating fraud, the NICB is hosting a week of educational FraudSmart programming for NICB members’ Special Investigative Units on topics ranging from hail damage and water mitigation to fraud driven by complex criminal networks.

Throughout Contractor Fraud Awareness Week, NICB has also launched a public education campaign offering resources to consumers in collaboration with NICB members, AARP, the Insurance Information Institute, and the Coalition Against Insurance Fraud.

Download NICB’s contractor checklist at https://www.nicb.org/media/2509/download/.