We all want to help people in need. But with so many charities out there, it can be tough to know if your donation is going to the right place. Look out for fake NGOs and fraudsters posing as social workers or charity owners.
With natural disasters increasing, it’s possible to be surrounded by victim relief funds or sob story spams about a humanitarian cause. However, helping others shouldn’t involve getting tricked. That’s why we must learn how to spot misleading fundraisers.
Let’s prevent scammers from taking advantage of our goodwill and identify them well in advance. Listed below are some common charity scam red flags:
- Pressure play – You get an unexpected call insisting on sending a donation immediately. They might ask you to wire money through a money transfer service like Western Union. Legitimate charities will let you donate when you want and in your own way.
- Dirty tricks – You’ll get a thank you message from a charitable organization even when you haven’t donated to them. In their appeal to you, they’ll make false, vague claims. There will always be an emotional element to these tricks.
- Proof of donation – Nonprofits are required to issue donation receipts so it’s a red flag if you don’t get a receipt or it’s missing the proper details like the organization name.
- Guaranteed returns – Charities are about helping others, not making you rich. If someone promises crazy returns on your donation, it’s definitely a scam.
Now, let’s look at how to prevent charity fraud. Here are some tips to beat the scammers at their own game:
Do your homework:
- Only give to reputable organizations and avoid copy-cat names.
- Don’t give out personal details like bank account number. Use a check or credit card for better security (and easier chargebacks if something goes wrong).
- Always ask for licenses, registration and similar verification documents.
- Do your homework before opening your wallet. Check their website, phone number and postal address. Read online reviews and talk to friends and family before giving money. Ask questions about how your money will be used and how much money is actually going to the mission vs the charity’s admin department.
- When paying online, make sure their website is secure. Look for ‘https/’ at the beginning. If it does not have an ‘s’, it might not be secure. Do not open random payment links or email attachments, even if they seem familiar.
Remember, a little research goes a long way. You can make sure your generosity makes a real difference by steering clear of those charity scams.
For more information on other types of fraud and how to report it, visit our Fraud Awareness page.
