Common giving scams and how to spot them
Every year, millions of people donate to nonprofit organizations that address a wide range of needs. While people can do much good by supporting charities, their altruism may also attract potential scammers. Prospective donors can learn to recognize common giving scams to help ensure that they are not victimized by criminals and their money goes to real charities.
A common tactic used by scammers is to set up a fraudulent charity. The New Jersey Division of Consumer Affairs notes that these charities may feature impressive names or a name similar to one used by a reputable, well-known charity.
Criminals may also use phishing emails, which have been around for decades and are easy to implement. Phishing emails are made to look like they come from a reputable source, such as an individual's bank or credit card company, or a charity; some may indicate recipients can win a prize if they open the email and click on a link within it. In a charity-related phishing scam, an email may request that recipients donate by clicking on a provided link. Consumers should not share their credit card information in an email, even if the sender claims to be from a reputable organization.
Some scammers also pressure prospective donors and potential victims into making donations over the phone. Reputable charities do not pressure donors into giving over the phone or via email, so solicitations for immediate donations are a telltale sign of a charity scam. If prompted to make donations with cash or via gift cards or wire transfers, people should hang up the phone, as the Federal Trade Commission notes such payment methods are how scammers request donations.
Another common giving scam is to thank potential victims for past donations they never made. This strategy is an attempt to trick generous individuals into thinking they have a past relationship with a charity they believe is reputable, which might make them less inclined to vet the person or organization thanking them. The scammers are counting on establishing a false sense of security and trust.
More information about giving scams and how to avoid them is available atĀ www.consumer.ftc.gov.

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