Giving to charity can be rewarding for those looking to support causes close to their heart. But charity scams are on the rise1 as fraudsters set out to deceive individuals looking to donate.
The clever techniques that fraudsters use may make it hard to detect a charity scam. But there are some ways individuals can be more vigilant to potentially avoid being scammed. This guide will take a look at potential tactics charity scams may use, ways to identify them, and steps to take for verifying charities and making safe donations.
Charity scams are fraudulent schemes that aim to deceive individuals into donating money or assets to a fake or illegitimate charitable organization. The tactics fraudsters use may make them seem legitimate, which may make detecting scams difficult.
Capitalizing on people's goodwill, fraudsters set themselves up as what looks like a legitimate charity to trick people into making donations. Different types of charity scams may include:
Although there are many scams to look out for, the intention of the fraudsters is generally the same. They seek to trick donors into sending them money, either by check, a wire transfer, or by taking bank account information.
In some cases, the scam could be about more than just getting the donation money, potentially aiming to gather personal information that could be sold as part of an identity theft scam.
As charity scams become more prevalent, it’s essential that individuals remain vigilant to prevent fraud. While it may be hard to detect charity fraud, especially if the scams look or sound legitimate, there are some key warning signs of scams to look for. These could include:
A good way to help potentially avoid charity scams is to verify the legitimacy of organizations before donating. Legitimate charities are typically federally registered organizations, which makes them generally easy to verify.
Individuals can follow these steps to help verify a charity:
Following these steps can help people be vigilant and potentially better protect themselves against charity scams. However, individuals should always remember if something feels wrong, they should trust their gut instincts. If the warning signs are there, individuals should hold off donating until they are sure that the charity is genuine.
It’s vital that people do their due diligence before donating to charity. Always remember to look out for warning signs that could indicate something isn’t quite right. Before making any donations to a charity, it’s important to be confident that it is legitimate. Taking the steps above may help verify a charity to ensure donations are going to the right place.
Potential donors can also help stay protected from attacks by increasing their vigilance and never giving out personal financial information over the phone or via email. Donors could consider using a safe method for donations that provides security and traceability, such as online fundraising platforms. For example, individuals can donate money to charity with PayPal, making donations to eligible charities of their choice directly on the website or app.
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If a scam is suspected, it’s crucial to report it. While some may have been able to spot the warning signs, others may not. Report charity scams as quickly as possible to help raise awareness and potentially stop fraudsters from being able to scam more people.
Individuals can report a fake charity and charity fraud through the Federal Trade Commission and state charity regulators. To report charity scams or contact the Federal Trade Commission. Those donating via PayPal that suspect a charity scam can report fraud in their PayPal account.
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