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Fake charities: How to spot scams and protect your donations
Fake charity scammers aim to take advantage of your kindness and swindle you out of your hard-earned money. Don’t be a victim! We need to expose their tactics and learn how to direct our donations so they actually make a difference.
Every year, well-intentioned, generous people lose millions of dollars to fraudulent charities. These scammers hide behind familiar-sounding names or play on our emotions by preying on our unimaginable stories of suffering. For every legitimate charity that appears, there are at least two fake charities that defraud people of their money.
How fake charity scams workIt all starts with a scammer creating a fake charity with a convincing name and noble cause, and going to great lengths to make the scam look credible and trustworthy. This could include:
Impersonating another charity. One of the most common tactics these scammers use is to exploit the reputation of a legitimate charity and slightly change its name, logo, and website address. With enough effort, they can make these operations look trustworthy. Fake celebrity endorsements. Because celebrities and influencers are often used in marketing, we tend to believe what our favorite celebrities endorse without a second thought. However, thanks to deepfake technology, scammers can create videos of anyone they want promoting their "charity," which is why it's important to double-check these endorsements. Social media manipulation. Scammers have been known to create fake accounts for their charities, or even worse, hack into real accounts, to spread false information and solicit donations. These posts are often vague and don’t provide a lot of specific information. Crowdfunding scams. Many online platforms designed to raise money for genuine people in need are often infiltrated by scammers. They make up sensational stories, pair them with tragic images, and exploit the trust factor of the platforms to steal donations. Know the red flagsUnfortunately for all of us, scammers are getting smarter and their tactics are becoming more believable, but that doesn’t mean you can’t tell the difference between a legitimate charity and a fraudulent one.
Watch out for the following red flags:
Pressure tactics. These fraudulent charities always try to get people to donate quickly and without thinking too much, so they use various pressure tactics to create a sense of urgency. Real charities will always appreciate your donations. Emotional manipulation. Fake characters always try to tug at your heartstrings with fake stories full of pain, illness, and hardship. They also use images of children or cute animals to elicit sympathy and encourage quick donations. Lack of transparency. Legitimate charities will always provide you with financial reports, board member information, and contact details when you ask for them. On the other hand, scammers deliberately hide this information to make their legitimacy difficult to verify. Obscure information. A feature of this scam is that these so-called organizations are usually not forthcoming about what they are doing and who they are trying to help. If a charity can't provide clear answers about its mission, programs, or financial situation, the best thing to do is walk away. How to Protect YourselfThese fake charities are everywhere, and if you're someone who regularly donates to noble causes, you need to know how to protect yourself and your donations.
Research, research, researchBefore donating to any charity, always check if it’s legitimate. You can use resources like Charity Navigator or the Better Business Bureau to do this.
Self-initiate a donationWhile real charities will sometimes reach out to people, especially if they’ve donated in the past, scammers are often behind unsolicited messages. Rather than responding to requests, find an organization known for its work in the area you want to support and contact them directly.
Say “No” to Unsolicited RequestsNo matter how urgent or heartbreaking the call or email may seem, don’t give in to the pressure. Take the time to assess the situation and the charity’s reputation.
Payment MattersOne of the ways scam charities try to evade responsibility is by asking for payment via untraceable payment methods like gift cards or cash. That’s why you should choose payment methods like credit cards or checks made directly to the charity. These leave a traceable record.
Report suspected scamsIf you come across a suspected fake charity, don’t walk away. Report it to an official agency like the Federal Trade Commission to help protect others.
Final ThoughtsIt’s infuriating that fake charities exist, preying on our natural desire to help those in need. But by being appropriately skeptical and committed to verifying organizations, we can keep ourselves safe.
We should not let emotions sway our donation decisions, but should effectively guide our philanthropic intentions and support the work of organizations that truly make a difference.