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Scams Interfere with Tsunami Charitable Efforts

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January 5, 2004

Tsunamis
• Researchers Study East Coast Tsunami Danger
• Caution - Disaster Relief Scams Ahead
• Tsunami Aid E-Mail May Contain Virus Attachment
• Scams Interfere with Tsunami Charitable Efforts

Con artists are targeting the South Asia tsunami catastrophe, and would-be charitable givers who want to assist victims may become victims of identity theft and other crimes, consumer advocates warn. Scams are likely to be in full swing by the end of the week.

There have already been reports of individuals soliciting door-to-door and setting up booths in front of stores. The American Red Cross and most other major aid providers do not employ such practices.

Other reports have surfaced about e-mails masquerading as official solicitations from the American Red Cross and other charities. These are actually "phishing" attacks that threaten to steal unsuspecting recipients' credit card numbers.

"As it did after September 11th, the American public is demonstrating its great generosity in offering assistance to those who are suffering. These financial contributions will provide food, medical assistance, clothing and shelter to those in need," said New York Attorney General Eliot Spitzer.

"Unfortunately, past experience also shows that some unscrupulous individuals will try to take advantage of this tragedy. These individuals will try to obtain money for themselves by falsely claiming that donations will be used for those affected by the disaster," Spitzer warned.

Since striking just over a week ago, the misery unfolding across South Asia has led to an exceptional level of giving. For instance, according to USA Today, Catholic Relief Services received $1 million in online donations over just three days' time, an extraordinary rate of volume that crashed the organization's Web site.

The Federal Trade Commission offers these tips to avoid charity scams:

• Ask for the name of the charity if a telephone solicitor does not provide it promptly.
• Ask what percentage of your donation will support the cause described in the solicitation.
• Verify that the charity has authorized the solicitation. Check out a charity by contacting the Better Business Bureau’s Wise Giving Alliance: www.give.org.
• Do not give out personal or financial information – including Social Security, credit card and bank account numbers – to anyone who solicits a contribution from you. Scam artists can use this information to commit fraud against you.
• Ask for a receipt showing the amount of the contribution and stating that it is tax- deductible.
• Do not give cash. For security and tax record purposes, it is best to pay by check – made payable to the beneficiary, not the solicitor.
• Ask for identification if you are approached in person. Many states require paid fundraisers to identify themselves as such and to name the charity for which they are soliciting.

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