Avoiding Charity Scams: What You Need To Know
Criminals see no ethical boundaries when it comes to defrauding victims.
You don’t need a better example than charity scams to demonstrate fraudsters’ unscrupulous nature. Using fraudulent charity schemes, scammers often exploit the generosity and kindness of ordinary citizens for personal gain.
They can reach you by phone, email, or even in person. Appeals on social media are also increasingly prevalent. But how can you identify these charity scams and protect yourself from their ruthless advances?
Here is our essential guide to prevent and avoid charity fraud in 2023.
1. Verify details
Verifying the charity’s identity and activities is important, even if it seems familiar. Scammers typically choose names that resemble larger, well-known charitable organizations. This is a common strategy to confuse and mislead donors.
If a charity organization contacts you, whether through phone, email, or in person, ask for their registered name, address, official website, and registration number. In addition, check how much they have raised, who exactly will benefit, and how donations will be utilized.
If they are unable to provide these details, consider it a red flag.
Moreover, search for their registered name on the IRS website. It is the easiest way to determine whether they are eligible to receive tax-deductible charitable donations. But, of course, this will not guarantee a charity’s authenticity.
According to a few reported incidents, the IRS does not conduct exhaustive checks on these types of operations. For instance, investigations into a fake charity scam last year revealed that the IRS had approved several fraudulent charities under the address of a rented mailbox.
The bottom line is you need to rely on your own research to verify a charity’s legitimacy. There are several ways to do this:
Confirm details with your state’s charity regulator.
Check their details, reviews, and ratings on Charity Navigator and Charity Watch. If you can’t find any information about the relevant organization on these websites, it is best to avoid a donation, no matter how legitimate it may seem.
Of course, this might prevent you from supporting smaller, less organized charities that genuinely pursue good causes. However, it is better to direct your hard-earned money to a verified charity than risk getting caught in a scam.
When a charity reaches you over the phone, search their number on PhoneHistory to find more details about the registered owners.
If they contact you in person, ask for their ID or any document that verifies their association with the organization they represent.
Check with your circle of friends, family, and colleagues whether they have donated or interacted with the respective charity. It doesn’t mean a charity is legitimate just because someone you know has donated.
But at least it would help you access more details to make a better-informed decision.
2. Build awareness of scam trends and triggering events
Holiday times are particularly known for a seasonal surge in charity scams. The FBI regularly issues warnings each year to alert people to these impending threats.
Many individuals feel extra generous with the holiday spirit, and sharing and giving become a priority. Some seek charities to make use of their tax deductibles before the year ends. All these create opportunities for fraudsters.
Charity scams are also widespread following disasters and tragedies.
The pandemic saw many of these cases escalating, with appeals for donations to support those who have lost their livelihoods. The recent earthquakes in Turkey and Syria also triggered a series of similar frauds that undermined genuine disaster relief efforts.
Understanding these trends and keeping yourself updated on current news and events is essential. It will equip you to remain vigilant and protect yourself from shady charity campaigns.
3. Use traceable payment methods
Scammers prefer instant and untraceable payment options. These can include cash, cryptocurrency, gift cards, and wire transfers. Any charity that requests donations with these payment methods is likely up to no good.
Legitimate organizations are already aware of the risks to donors. They will, therefore, readily offer credit card and check payment options. These are traceable and will allow you to track whether your money has gone toward the intended cause.
It is also important to ignore pleas for quick donations. Scammers often pressure their victims to act fast. Remember, it is ok to say no if you do not feel comfortable or ready to make a contribution.
4. Practice digital safety
Here are a few essential steps to strengthen your digital safety:
- Avoid clicking on links or attachments if you receive a donation request via email, social media, or text. These could lead to malware or phishing attacks.
- Directly type in the charity’s website URL on the browser to find more details. Many fake websites imitate genuine ones. You can bypass them by typing the site name yourself.
- Never click on online ads or social media posts seeking donations.
- Avoid sharing unnecessary information. For example, a legitimate charity will not require your social security number or bank details.
To Recap
The threat of charity fraud, especially during times of economic hardship and natural disasters, is not a new phenomenon.
Shady charities raise their heads whenever opportunities arise. By falling victim to one, you will not only lose your money: it could strip away your compassion and make you far less inclined to help others in the future.
Charity fraud is also a threat to legitimate charities and those in need. They take away valuable donations from these organizations.
These are much-needed funds that could go into supporting individuals and causes that need them most. By taking action to avoid charity scams, you will be helping authentic charitable organizations, too—to regain funds for the work they do.
So, educate yourself on best practices to ensure your safety. Remember that scammers prey on human vulnerabilities. They will not hesitate to exploit your kindness and generosity.
Raising awareness about possible charity scams and reporting them to officials will be crucial to combat these ruthless threats.
Your action could go a long way to help your loved ones, community, those in need, and especially the legitimate organizations that work tirelessly to make an impact.