Holiday Giving Scams

Watch Out For Holiday Giving Scams

During the holiday season, many of us are in the giving mood and happily donate our hard-earned money to those in need via charitable organizations. But scammers are afoot and ready to take your offerings too. They’ll tug at your heart strings, pretend to be legitimate, and ask you to donate to their fake charities. Don’t take their bait!

How to spot a charity or fundraising scam

Scammers will use any method possible to steal your money. They will solicit you over the phone, email, social networking sites, in person, and through the mail. Here are some warning signs:

• Scammers are vague or refuse to give details about the organization, its mission, costs, and how your money will be used.
• Scammers will not provide information on tax deductions relating to your donation.
• Scammers may use a name that resembles a legitimate charitable organization, so Google it before you give.
• Scammers use high pressure tactics to get you contribute immediately.
• Scammers may ask you to send your contribution through wire services or make a contribution with gift cards.

If a “charity” asks you to make a payment through Western Union, Money Gram or another wire service, be on alert. This is a tactic used to ensure that they will get the money quickly, leaving you with virtually no recourse to get reimbursed. Some scammers may ask you to make a contribution with your credit or debit card. This is an easy way for them to access your bank account information and steal your money.  Hang-up or walk away immediately!

Don’t let your charitable giving turn sour

Before you give, it is very important that you research the charitable organizations that you want to give to, even those that you are familiar with. You can also visit the Internal Revenue Service (IRS) webpage to find out which organizations are eligible to receive tax deductible contributions.  The Federal Trade Commission (FTC) link below also has information on a charity checklist and how to spot a charity scam.
If you believe that you are victim of a scam, file a complaint with the FTC.