Understanding Charity Scams
What are Charity Scams?
Charity scams are fraudulent activity where scammers impersonate charitable organizations to solicit donations. Scammers collect funds for personal gain and have no intent on helping those in need. The requests for donations may be received via phone, email or even by text messaging. Heightened awareness is encouraged especially during times of tragedy and disaster.
Red Flags of Charity Scams
- Use of urgent, high-pressure tactics to elicit a donation including the use of strong, graphic imagery or stories to evoke sympathy.
- Requesting alternative payment methods to donate such as payment apps, cryptocurrency, gift cards and/or wire transfers.
- Ask questions, how is the money used, where is the charity headquartered, with is the organizations’ tax-exempt number? What percentage of the donation is directly benefiting the cause?
- Research the charity to determine if it’s a registered public 501(c)(3) organization.
- Using a charity name that sounds very similar to other well-known charities.
- Pushing for immediate payments after receiving initial resistance from victim stating they want to research the “charity.”
- Research the charity doing online searches and enter the word review, scam or complaints after the charity name. For ex. ABCcharity scam
Guiding Principles for Fraud Prevention
Review the tips below to prevent becoming a victim of a Social Engineering attack.
