Charity Scams

The earthquakes in Syria and Turkey are sad enough as it is, but what scammers are doing to exploit the generosity of people to help and donate is a catastrophe of its own.

The Federal Trade Commission (FTC) is warning kind-hearted Americans to stay vigilant and make sure they understand how to make sure their money helps those people in need.

Here’s what the agency shared with ConsumerAffairs about how to spot and avoid a scam:

• Don’t make donations in cash, by gift card, or by cryptocurrency. Once you do, you’ll probably never get that money back.

• Whoa -- Slow down. A frequent scammer trick is to try and build immediacy into the situation, but because donations have to go through a process before they ever wind up on a survivor's doorstep, donors don’t have to give immediately. Before clicking "Send" on a donation button, search online for the name of the charity you are interested in supporting, plus words like “review,” “scam,” or “complaint.” See if others have had good or bad experiences with the charity.

• Take a look at what charity watchdog groups say about the organization. Just because a charity has a familiar-sounding name or a professional pitch is no guarantee it's for real. "Don't assume that familiar-sounding names or messages posted on social media are legitimate. Donate to charities you know and trust and with a proven record of dealing with disasters," Gema de las Heras, a Consumer Education Specialist at the FTC, said.

• Ask how your money will be spent. If someone calls to ask to donate, they should be able to answer how much of your donation will go to the program you want to help, and other critical questions like "Will my donation be tax-deductible?" (you can find out here) and "What is the charity’s exact name, web address, and mailing address?"

• Look at fees and timing if you’re donating through an online platform or social media. The agency says people would be smart to check whether their donation will go directly to the charity -- and if not, how long it will take to get there, and if there are fees that the donor would have to pay.

Need suggestions of valid charities?

To make sure that donations are getting to the charities that can help the Turkey/Syria situation the most, CharityWatch identified charities that spend at least 75% of their cash budgets on programs; that maintain fundraising efficiency of $25 or less to raise each $100 in cash donations; and meet CharityWatch's governance and transparency benchmarks. That list is available here.

CharityNavigator has prepared its own list, available here.

With the flooding ravaging Missouri and eastern Kentucky and fires continuing to rage in California, scammers are trying to take advantage of victims by stealing their money and personal information. Some criminals have even continued to haunt victims after they've gotten back on their feet.

The Federal Trade Commission (FTC) says there are three primary targets of the scammers: people who may be looking for government assistance to rebuild their homes and businesses, people who need help removing debris, and those who want to donate money to disaster victims.

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The agency offered several tips to current disaster victims and anyone else who might face schemes like these in the future. They include:

Be skeptical of anyone promising immediate clean-up and repairs. Some scammers may quote outrageous prices, demand payment up front, or lack the skills needed.

Check them out. FTC officials say scammers have been known to pose as companies that can help clean up debris or repair essential processes in a home like an HVAC system. “Before you pay, ask for IDs, licenses, and proof of insurance. Don’t believe any promises that aren’t in writing,” said FTC official Gema de las Heras.

Look out for rental listing scams. Victims of floods and fires often need someplace to live while they’re rebuilding or waiting for the situation to improve enough that they can return to their homes. The FTC says to steer clear of anyone who tells you to wire money or ask for security deposits or rent before you’ve met or signed a lease.

Never pay by wire transfer, gift card, cryptocurrency, or cash. Using one of these methods to pay someone could be a win-lose of epic proportions for consumers. “Scammers ask for these types of payments because, once they’ve collected the money, it’s almost impossible for you to get it back,” warned de las Heras. “And never make the final payment until the work is done and you’re satisfied.”

Guard your personal information. Only scammers will say they’re a government official and then demand money, credit card information, bank account information, or your Social Security number.

Know that FEMA doesn’t charge application fees. Government agencies don’t charge “application fees.” If someone wants money to help you qualify for FEMA funds, the likelihood of it being a scam is high.

Spot disaster-related charity scams. While crowdfunding sites like GoFundMe offer tips on how to prevent being ripped off by a donation scammer, the better bet might be to use the online databases of organizations that can help you research the validity of a charity.

Here are four organizations that offer reports and ratings about how charitable organizations spend donations and how they conduct business:

• BBB Wise Giving Alliance

• Charity Navigator

• CharityWatch

• Candid

For those who anticipate that their donation will be tax-deductible, the only way to guarantee that is by using the IRS’s Tax Exempt Organization Search. By entering a few details about the organization, the IRS will tell you if it qualifies.

It may seem redundant, but taking extra steps to search for an organization via the state charity regulators at nasconet.org could help verify if an organization is registered to ask for donations.

ShelterLogic Group of Watertown, Conn., is recalling about 786,000 RIO-branded swinging hammock chairs.

Improper insertion of the pins provided for assembly can cause the chair’s legs to collapse, posing an injury hazard.

The firm has received 24 reports of incidents that resulted in injuries such as bruises, aches, and pains; head lacerations; back strain; concussions; and abrasions from consumers who fell while using the chairs.

The folding chairs have a black or gray metal frame, a fabric seat, and a backrest with a pillow; some have a drink holder. They were sold in gray, navy, blue, red, and camouflage. RIO is printed below the pillow. Only chairs with warning tags on the back of the chair’s backrest or armrest are included in this recall.

The chairs, which were manufactured in China, were sold at Blain’s Farm & Fleet, Camping World, Costco, Lowe’s, and Tractor Supply Company stores nationwide and online at Amazon.com, CampingWorld.com, Costco.com, Lowes.com, Walmart.com, and other websites from January 2020, through June 2022, for between $40 and $60.

What to do

Consumers should immediately stop using the recalled chairs until they have reviewed the new instructions and the pins are properly inserted into the chair’s legs.

Consumers should contact ShelterLogic Group to receive the new instructions that will help verify proper and safe pin insertion.

Consumers may contact ShelterLogic toll-free at (888) 635-3359 from 9 a.m. to 5 p.m. (ET) Monday through Friday, by email at RIOcare@shelterlogic.com, or online for more information.

People around the world are continuing to support Ukraine as its conflict with Russia enters its second month. Unfortunately, scammers are still taking advantage of consumers who are making charitable donations to those in the country who have been affected.

New data from email security company Tessian shows that the number of new online domains containing “Ukraine” registered this year has increased by 210%. Scammers are also getting more aggressive in masquerading as legitimate organizations. 

Early on, scammers seemed to be content with domain names like “supportukraine[dot]services,” but Tessian says the bad actors are now impersonating honest organizations like UNICEF or the Red Cross.

The researchers told ConsumerAffairs that some fraudsters are also leveraging a fraudulent QR code to compel victims into sending cryptocurrency payments. As the use of QR codes has exploded in ads and signage, scammers have moved to use them to trick consumers into accessing a fraudulent site.

How to protect yourself

Tessian offered some recommended actions that people can take to avoid being scammed:

Be on the lookout for charities that ask for donations made in cryptocurrency. “Some charities do and are accepting cryptocurrency donations,” Charles Brook, Threat Intelligence Specialist at Tessian, told ConsumerAffairs. “But be cautious of any emails purporting to aid or receive donations in an effort to support the humanitarian effort in Ukraine. If cryptocurrency is requested from an unsolicited email then the likelihood is that it is a scam.”

Where is that email coming from? “Before interacting with any Ukrainian themed email received, check the source and email header to confirm the organization it originated from is legitimate,” Brook advises.

Go direct. If you want to make a donation in support of Ukraine, Tessian says the best way is to go directly to your preferred charitable organization. Consumers who want to verify that the charity they're giving to is legitimate can use Candid or CharityNavigator.

Out of the goodness of their hearts, people around the world are supporting the people of Ukraine as the country's war against Russia drags on. Some are doing that by making monetary donations, but doing so can be risky.

When people look for ways to give, the emails they receive, social media posts they read, or the search results they find are pockmarked with scammers trying to siphon off donations into their own pockets.

The scams are your typical bleeding heart cons dressed up in the blue and yellow colors of the Ukrainian flag and adorned with official-looking logos. When ConsumerAffairs ran a sample “I want to make a donation to Ukraine” search online, we found 927,000 results. Needless to say, it’s doubtful all of those are legitimate.

The Ukrainian Airbnb scam

Shortly after the Russian invasion of Ukraine, a rather ingenious idea popped up in which people booked stays at Airbnb locations in places like Kiev to get money directly into Ukrainian bank accounts. But rather than actually going there, kind-hearted souls left the Airbnb hosts a note saying they wouldn’t actually be coming and they should use the money as their version of humanitarian aid. Unfortunately, that good intention went bad.

“While the Airbnb donation program is a wonderful idea and has been helpful, due to ghost listings and scammer exploitation, Airbnb has cracked down considerably which has inhibited the flow of funds to those in need,” Adam Levin, former Director of Consumer Affairs for the State of New Jersey and author of the security manifesto Swiped, told ConsumerAffairs. 

Levin doesn't say just skip the Airbnb idea altogether -- just be careful.

“If you are still inclined to give through the Airbnb network, confirm that the listing has been established over time,” Levin suggested. "[But] be suspicious of multiple listings, it could be a company trying to profit from the outpouring of support rather than a family in need.”

Other new scam twists to be aware of

As scammers become more sophisticated, it’s becoming increasingly difficult to instantly spot a potential scheme. Thankfully in this situation, there are lots of organizations stepping up to stop scammers from making money off of human tragedy.

While bad spelling and grammar and requests for gift cards are still hallmarks of a scam, ConsumerAffairs went looking for new wrinkles that might help out in today’s more refined scam world. Here’s what we found:

Websites that have “Ukraine” in the URL. Anyone -- including scammers -- can register a domain name that contains nearly every possible combination of words. As an example, when ConsumerAffairs looked for variations of “SupportUkraine.com," we found nearly 30 variations ranging from “supportukraine.services” and “helpforukraine.com” to “supportukrainestudents.com.”

Security researchers at ESET have already done some homework on fake URLs and found several Ukraine-related domains that people should “be wary of."

Beware of group-based social media. ESET researchers said they’ve also seen emotional pleas for help that are based in social media “groups.” ConsumerAffairs found several “Help Ukraine” related communities on Reddit – two with tens of thousands of members. More than 50 results popped up when we looked for Facebook groups relating to “Help Ukraine.”

“Be skeptical of social media posts that promote a charity unless you verify that the organization is legitimate. The friend recommending it may not have done their research and the number of likes for a social media post doesn’t say much about its legitimacy, either,” the ESET researchers said.

How to find out if a charity is truly legitimate? 

Consumers who want to verify that the charity they're giving to is legitimate can use Candid and CharityNavigator. In its coverage of the Ukrainian donation situation, the Council on Foundations appeared to be a big cheerleader of Candid. It credited the organization with tracking 310 Ukraine-related grants valued at $443 million and an additional $333 million in pledges.

The Council on Foundations also offers thoroughly-vetted response funds that people can feel safe donating to, as well as non-profits for people who are sympathetic to those impacted in Russia.

“You should also check with your state's Bureau of Charities,” Levin told us. “They’re usually part of the State Division of Consumer Affairs or the Office of the Attorney General in your state.” 

Scammers have proven once again that they’ll stop at nothing to defraud someone. 

With more than 35,000 wildfires ripping through the U.S. West, burning nearly 3 million acres and putting people at great health risks, the fraudster community has decided to see what they can make out of that calamity. According to Scamicide, scammers are posing as charities that help wildfire victims, but they’re only hoping to help themselves and no one else.

Think before you offer to donate

One of the leading reasons scammers love taking the charity route is because these organizations are not subject to the National Do Not Call Registry. That means legitimate charities can still contact you by phone even if you’re signed up.

The problem, says Scamicide’s Steve Weisman, is that you can never be sure who is really calling you, so you may be contacted either by a fake charity or a scammer posing as a legitimate charity. 

“Using a technique called spoofing, the scammers can manipulate your Caller ID to make it appear that the call is coming from a legitimate charity when it is not,” Weisman explains. “Similarly, when you are solicited for a charitable contribution by email or text message you cannot be sure as to whether the person contacting you is legitimate or not.”

There are other hallmarks of scam charities. The Center for Disaster Philanthropy (CDP) notes that with cryptocurrency being a hot commodity, some scammers are asking donors to use bitcoins or other digital assets to make their donations. If that happens to you, stop right there because it’s a big red flag that someone is out to fleece you.

Do your homework and ask the right questions

ConsumerAffairs reached out to Patricia McIlreavy, the President of The Center for Disaster Philanthropy, for more advice about how people can avoid charity scammers. At the top of her list of suggestions is doing your research. 

McIlreavy recommends that consumers ask the organization they’re donating to if it’s a registered non-profit and whether it has a proven history of working with communities in disasters. 

“Additionally, there are tools, such as Charity Navigator, Charity Watch, BBB Giving, Guidestar, which do the vetting research for you. Nonprofits detail their ratings with these organizations on their websites,” she said.

Another way to find out if the charity or fundraiser is registered in your state is by contacting the National Association of State Charity Officials. 

“It is commendable to want to help, and always a good idea to take an extra moment to ensure your hard-earned dollars get to the people in need,” McIlreavy said.

The Federal Trade Commission (FTC) suggests that you also consider these tips if you want to donate to a charity:

• Designate the disaster to make sure your funds are going to disaster relief, rather than a general fund. Note: The CDP has two active wildfire-related funds that you can check out if you want to donate to relief efforts.

• Don’t assume that charity messages posted on social media are legit. Research the organization yourself. Search the name of the organization with terms like “complaint,” “review,” “rating,” or “scam” to see if there are any potential issues.

The holidays are just around the corner, which means the season of giving is nearly upon us. But a recent action taken by the FTC shows just how important it is for consumers to be cautious when it comes to the organizations and causes they choose to donate to. 

This week, the agency -- in coordination with regulators from New York, New Jersey, Minnesota, and Virginia -- secured a settlement with a charity funding operation that allegedly defrauded consumers out of millions of dollars in donations. 

The settlement names four defendants who ran several charities that were supposed to raise money for veterans, retired and disabled law enforcement officers, breast cancer survivors, and others in need. However, they allegedly pocketed up to 90 percent of these donations to pay themselves. Regulators say the sometimes less than two percent of proceeds went to the groups that were supposed to receive the funds.

As part of the settlement, the charity fundraising business is being forced to shut down and the defendants will have surrender tens of millions of dollars to the aforementioned states. The FTC says these funds will then be redistributed to legitimate charities “that perform services that mirror those promised by the sham charities.”

“This action puts fundraisers on notice: the FTC will not only shut down sham charities, it will aggressively pursue their fundraisers who participate in the deception,” said Andrew Smith, the director of the FTC’s Bureau of Consumer Protection. 

Do your research before donating

This case highlights just how important it is for consumers to do their research before donating money to a charity. New York Attorney General Letitia James says that establishing trust with a charitable cause through proper vetting can ensure that your generosity isn’t being exploited.

“My office will continue to work with partners such as the FTC and other states to take action that protects donors and charitable entities,” she said. 

Smith says consumers can use the FTC’s website at this address to learn how to spot a potential charity scam.

It doesn’t matter what your political affiliation is; nefarious scammers are trying to leverage what sounds like an innocent enough call into a donation that goes directly into their pockets and not any candidate’s.

Scamicide reports that fraudsters are pulling off the scheme via spoofing, a technique used to make it appear like a call is coming in from a known source on a Caller ID -- in this case, a candidate or political party.

How do you prevent this?

What’s worse is that there’s a hole in the U.S. Do Not Call list rules that allow political parties to robocall all they want.

So, what’s a consumer to do? Either don’t answer what appears to be a call from a political candidate or party and force the caller to leave a message, or use a smartphone add-on like Google’s Screen Call. 

Other than that, if your Caller ID pops up with the name of a candidate you favor, be smart.

“If you do wish to contribute to a political campaign, the best way to do this is by going to the candidate’s official website and make your contribution,” Scamicide’s Steven Wiseman, Esq. suggests. 

“Even then, make sure that when you are giving your donation online that the website address begins with https instead of just http. Https indicates that your communication is being encrypted for better security. If you are being asked to contribute to a political organization rather than a candidate, you should definitely do your research to determine the legitimacy of the organization before making a donation.”

Removing your phone number

ConsumerAffairs found another defense, too. According to Lifewire, most states require only street addresses -- but not a phone number -- when a citizen registers to vote. Logically, if a registered voter removes their phone number, any call pretending to be from a political party or candidate could be considered a fake. 

If you like that notion and you’ve already registered to vote, all it takes is a voter registration update/change to remove your phone number. The effort it takes to make that happen varies from state-to-state. The U.S. Election Assistance Commission offers a complete directory of every state’s offices and processes.