HONOLULU (HawaiiNewsNow) – Officials are urging the public to be on the lookout for potential fraud and scam activity following the recent Kona low flooding.
The City and County of Honolulu’s Department of Emergency Management (DEM) and the Federal Emergency Management Agency (FEMA), say that after a disaster, scam artists will attempt to take advantage of disaster survivors.
Bad actors may attempt to exploit individuals posing as aid agencies, government officials, or charitable organizations.
The public is advised to take the following precautions to protect themselves and their families:
- Do not share personal information with unknown callers. Legitimate agencies like FEMA or DEM will not request sensitive information unexpectedly.
- Do not trust individuals asking for money. Government disaster assistance programs will not require upfront fees.
- If you suspect fraud, report it! The City…
MANAGEMENT & CULTURE (THE “TONE AT THE TOP”)
Fraud thrives in “sloppy” environments where leadership ignores the rules.
- The Fraud Triangle: For fraud to occur, three elements must be present: Pressure (the need for money), Rationalization (thinking “I deserve this”), and Opportunity (weak controls). You can only control the Opportunity.
- Whistleblower Hotline: Provide an anonymous way for staff to report “odd behavior.” Most internal frauds are caught via tips, not audits.
- Background Checks: Conduct credit and criminal record checks for all employees in financial or data-sensitive roles.
- Annual Ethics Training: Make sure every staff member knows that the company has a Zero Tolerance policy toward “borrowing” from petty cash or fudging overtime.