’Tis the season for giving. Alas for fraudsters it is a time for taking – specifically, your money from deserving charities that really need help.
According to VISA, charity scams are most prevalent in December and January.
Criminals focus on this time of year to take advantage of the situation through simple charity scam methods. Those include creating fake charities and imitating real charities, often with spoofed websites and wording that look like the real thing. They will even use AI to mimic real celebrities asking for help through donations.
“This is the time of year when we consider sharing our blessings with others,” said Jeff Taylor, head of Commercial Fraud Forensics at Regions Bank. “Fraudsters also know this and create requests to donate to fictitious organizations. Thoroughly investigate the organization before providing your financial information like your credit card number or writing a check.”
The FBI says the first step to protect yourself is to do your own research. Start with the IRS database of legitimate organizations. In a matter of minutes, you can determine who is real and who’s not. Another valuable resource is the Better Business Bureau’s Wise Giving Alliance.
There are also ways to confirm local nonprofits through the National Organization of State Charity Officials.
Remember, giving is good and the timing is perfect. Just make sure the source is legit before falling victim to a charity scam.
Warning Signs of a Potential Charity Scam
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- The first warning sign is pressure to respond immediately. Fraudsters use pressure tactics and chaos to entice their victims to act impulsively and without proper investigation.
- A request for a gift card, wire transfer, cryptocurrency payment or transfer to a crypto wallet. Those are scammers’ delights because they are hard to trace.
- A thank-you note when you don’t remember making a donation. The idea is to make you believe you’ve donated before, so why not again?
- Misrepresentation of a charitable organization with a recognizable name. Fraudsters may spoof the phone number or create a spoofed website in a name similar to one owned by a legitimate charity.
As always, use good cybersecurity (anti-phishing plug-ins on your browser, new and unique passwords on all accounts) and avoid clicking on unsolicited links you come across in texts, emails and on websites.
This is the time of year when we consider sharing our blessings with others. Fraudsters also know this and create requests to donate to fictitious organizations. Thoroughly investigate the organization before providing your financial information like your credit card number or writing a check.”
Jeff Taylor, head of Commercial Fraud Forensics at Regions Bank
The information presented is general in nature and should not be considered, legal, accounting or tax advice. Regions reminds its customers that they should be vigilant about fraud and security and that they are responsible for taking action to protect their computer systems. Fraud prevention requires a continuous review of your policies and practices, as the threat evolves daily. There is no guarantee that all fraudulent transactions will be prevented or that related financial losses will not occur. Visit regions.com/STOPFRAUD or speak with your Banker for further information on how you can help prevent fraud.