How People Can Efficiently Protect Themselves From Charity Scams

How People Can Efficiently Protect Themselves From Charity Scams

Giving money to organizations that work to improve society is an act of charity that occasionally backfires.

The Federal Trade Commission (FTC) reported in the year 2020 that American citizens had lost a total of $145 million due to fraud associated with the lockdown, which included charity scams.

If you feel moved emotionally by a worthy cause, your reaction may be to go for your wallet. However, it is crucial to perform some research.

To protect yourself from being taken advantage of, here is how to recognize and stay away from charity scams.

How Do These Scams Work?

The FBI cautions that while charity fraud schemes can happen at any time, they are more common following well-publicized catastrophes and disasters.

Through emails, social media postings, crowdfunding websites, or cold calls, charity fraudsters solicit money.

The FBI advises exercising care and conducting research before making charitable donations because scammers target weak spots.

Donating Safely

Online shopping

Here are a few ways to check if you’re giving your money to the right people:

  • Use phrases like “top charity for [insert cause]” or “highly-rated charity for [insert cause]” when conducting a Google search to find groups.
  • If you’re thinking about donating to a charity, look up the name of the organization with “complaint,” “review,” “rating,” or “scams.”
  • Scammers request donations in the form of cash, gift cards, or wire transfers. According to the FTC, using a credit card or check is safer.
  • Keep track of every donation. Additionally, check your statements to make sure you’re only being billed for the donation you agreed to make and that it isn’t a recurrent one.
  • To prevent giving to a fraudster, find out exactly who will be receiving your money. This is especially true when giving through services that facilitate crowdsourcing.

Various Scammer Tactics

These are a few techniques that scammers use:

  • Forcing you to quickly complete a contribution.
  • Thanking you for a contribution you have never made.
  • Altering the caller ID to make the call appear to be from a nearby area code.
  • Using names that somewhat resemble but differ significantly from the names of well-known, identifiable nonprofits.
  • Making generalized, sentimental statements without providing information on how your donation will be used.