The Insurance Council of Australia (ICA) has called on insurance professionals to stay alert to a wave of post-disaster scams emerging across New South Wales in the aftermath of severe flooding.
The organisation has issued specific guidance for insurers, brokers, and claims handlers to help protect affected clients from unauthorised repair providers and fraudulent operators.
According to the ICA, individuals posing as tradespeople – commonly dubbed “disaster chasers” – have been approaching residents with unsolicited offers of clean-up or rebuilding services, frequently requesting upfront cash payments. These individuals often lack formal accreditation and are not connected to insurers, with completed work frequently falling short of required standards.
“Unfortunately, we know disaster chasers can be out and about taking advantage of these devastating events for their own personal gain,” said ICA CEO Andrew Hall. “We urge people to act with caution, and anyone who is approached by a disaster chaser should call the relevant authorities.”
The ICA is asking brokers and insurers to reinforce several precautionary measures with policyholders:
To assist on the ground, an ICA-backed Insurance Hub is now operational at the Taree Leagues Sports Club, offering in-person support to policyholders seeking to discuss their claims or confirm insurer-authorised contractors.
Insurance providers have recorded more than 4,100 claims as of late May, with most originating from the Mid North Coast, Hunter, and Greater Sydney regions.
Home insurance accounted for the majority of claims, followed by motor and commercial policies.
Beyond trades-related fraud, scams impersonating banks and government agencies have also surfaced.
Individuals posing as financial institution staff have contacted affected residents with requests for login information or fund transfers.
Similarly, impersonators claiming to represent entities like the Australian Tax Office or myGov have attempted to collect personal data under false pretences.
Both government and banking organisations have reiterated that they do not seek sensitive details via unsolicited messages.
Customers are urged to contact institutions through verified channels if they receive unexpected requests.
Authorities in several states, including Western Australia, have also flagged instances of scammers impersonating charities through social media to solicit donations – often in the form of digital gift cards or cryptocurrency.
Choice.com.au said these appeals are typically unauthorised and may target individuals who have previously donated.
Insurance professionals are encouraged to guide clients toward the Australian Charities and Not-for-Profits Commission (ACNC) register to confirm the legitimacy of donation requests. Official emergency service websites also list approved fundraising partners.
