Many of our members have big hearts when it comes to helping people in need or the community at large. When disaster strikes or a heartwarming story goes viral, it’s natural for them to want to open their wallets. Unfortunately, scammers know this, too, and they’re always looking for ways to take advantage of generous donors.
Charity scams are rising, and fraudsters are getting more sophisticated in their tactics. At Tropical Financial, we want to help you give wisely and protect your hard-earned money. Here’s what you need to know to avoid falling victim to charity fraud.
Common Charity Scams
Fake Charities
Some scammers create bogus charities with names that sound similar to well-known organizations. They may even have professional-looking websites, but a closer look can reveal red flags like spelling errors, missing contact information or high-pressure donation tactics.
Fraudulent Fundraisers & Crowdfunding Scams
Crowdfunding platforms like GoFundMe make donating easy, but not all campaigns are legitimate. Scammers steal images from real tragedies or create emotional stories to convince people to give. If a fundraiser pulls at your heartstrings but lacks details about how funds will be used, be cautious.
Phishing Scams
Scammers also send fake emails or create fraudulent donation websites to steal payment information. These sites may look real, but their goal is to take your money—and possibly your identity.
How to Protect Yourself
The U.S. Secret Service offers these tips to help you avoid charity scams:
Stay Alert
Be wary of emotional appeals that don’t explain exactly where the money goes. A touching photo or video doesn’t guarantee a fundraiser is legitimate.
Take Your Time
Scammers create a false sense of urgency to get you to donate on the spot. A legitimate charity will welcome your support anytime—you should never feel pressured to give immediately.
Do Your Research
Before donating, verify the organization’s legitimacy using trusted resources like:
- Better Business Bureau’s Scam Tracker
- Charity Navigator
- Charity Watch
- IRS Tax-Exempt Organization Search
Verify Requests
Never donate in response to an unsolicited email, text, or phone call. Instead, go directly to the charity’s official website to contribute.
Be Cautious with Crowdfunding
If you’re donating through a crowdfunding platform, only give to fundraisers organized by people you personally know. Otherwise, confirm the campaign’s legitimacy before donating.
What to Do If You’ve Been Scammed
If you suspect you’ve donated to a fraudulent charity, report it immediately to:
- Local law enforcement
- The Federal Trade Commission
- The Internet Crime Complaint Center
Give with Confidence
Donating to charity is a great way to help those in need, but scammers hope you won’t look too closely before giving. By staying vigilant, researching before donating, and verifying an organization’s legitimacy, you can ensure your generosity makes a real difference. For more information on scams to look out for, go to our website or click below.
