Con Artists Pose as Katrina Evacuees

Sept. 20, 2005 -- -- As people across the United States open their hearts and wallets to help the victims of Hurricane Katrina, there are some who see Americans' generosity as an opportunity to get a little more cash.

In Louisville, Ky., Derrick Clayton told a harrowing story to the television cameras.

"I can't swim and I'm terrified of water," he told news crews.

The Red Cross gave Clayton a new ID, a $360 debit card and a week in a hotel. But it turns out Clayton has not lived in New Orleans since 1998. The cameras were there when police arrested him for fraud.

"I made a mistake, made a silly mistake," Clayton said. "Now I'm paying the consequences for it."

From North Carolina to Florida to Arkansas, scammers are pretending to be evacuees. While the Red Cross says fake disaster claims are extremely rare, it couldn't immediately provide any statistics to prove that. The Red Cross has a centralized computer system that helps identify people who register more than once and try to double dip. But the organization admits it's hard to tell the scam artists from those who have really lost everything.

"I don't understand how people can lay their heads down and sleep at night knowing they've cheated people," said Dr. Tracy Legros, a hurricane evacuee.

Unscrupulous people posed as victims and tried to cash in after 9/11 as well. The Red Cross said this kind of fraud only seems to happen after big, well-publicized disasters.

An investigation by the Florida Sun-Sentinel, however, revealed that over the years FEMA has given millions of dollars to people who were nowhere near disaster zones.

"Good Morning America" consumer correspondent Elisabeth Leamy offered these tips for donors who want to see their money get to the actual victims of the hurricane:

Don't try to reach out directly to the survivors yourself.

Don't give to brand new charities started up just for Hurricane Katrina, no matter how well-intentioned. The best thing to do is give to well-established organizations like the Red Cross and Salvation Army.