How to Protect Yourself and Your Finances
It’s an unfortunate fact that fraudsters often target the generosity of Americans by implementing scams focused on defrauding those who wish to support charitable causes and disaster relief efforts. Scammers have been known to pose as charitable entities, collecting donations for charities or victims of natural disasters.
Following are some red flags that can alert you to fraud as well as tips to help ensure your donations go to legitimate causes.
Red flags
Be on the lookout for the following red flags, which can indicate potential fraud:
- Requests for alternative forms of payment – Exercise caution with any organization that requests donations in the form of gift cards, wire transfers, Venmo/Zelle/PayPal payments, etc., as this can be a sign of a scam.
- High-pressure sales tactics – Legitimate charitable organizations will never use hard-sell tactics or pressure you into making a donation.
- Requests for personal and/or financial information – Never provide personal or financial information, as this can put you at risk for identity theft.
- Requests for money in exchange for financial support – It’s not just donors who are the targets of financial fraud — victims of natural disasters can also be at risk. Don’t believe anyone who asks for an upfront cash deposit in exchange for disaster relief support. Legitimate organizations never require victims to give money in order to receive money.
- Door-to-door contractor solicitations – In the aftermath of natural disasters, homeowners often face the added risk of “storm chasers” who exploit the urgency to repair damage. To protect yourself, always verify a contractor’s credentials, obtain multiple written estimates and consult with your insurance company before beginning any repairs.
- Suspicious emails with links to donate – It’s not uncommon for legitimate charitable organizations to solicit donations via email; however, it’s important to be on the lookout for fraudulent emails. The following tips can help you identify suspicious emails:
- Check the “from” email – Is the email sent from a legitimate .org email address? If the email is from an unknown source, don’t click on any links or send money, as this may be a sign of fraud. Instead, open a new web browser window and navigate directly to the organization’s website. Doing so can help ensure you’re donating to the intended source.
- Be on the lookout for typos – Typos, grammatical mistakes and awkward phrasing are tell-tale signs of a fraudulent email. Legitimate charitable and government organizations take time to proof read their emails before reaching out to donors.
- Hover over links before clicking – When you hover over a link, you should be able to see a pop-up that shows the link’s actual URL, which may differ from the text in the email. If the actual URL doesn’t match the intended website, don’t click on it, as the link could be fraudulent.
Tips for avoiding charity and disaster relief fraud
Take the following steps to avoid falling victim to fraud:
- Reach out to charitable organizations directly – One of the best ways to help ensure your money makes it to the intended recipient is by contacting the organization directly. Instead of responding to a call, text or email, call the charity or navigate directly to its website.
- Be cautions with emails – Be on the lookout for warning signs of suspicious emails (as noted above), and resist the urge to click on links or respond if you suspect an email may be fraudulent.
- Maintain anti-virus software – Your computer should be equipped with strong, updated security software that regularly checks for suspicious and harmful activity. Never connect to the internet without strong security software in place. It’s also important to regularly update your anti-virus software and operating system to help ensure you’re accessing the latest bug fixes and security features. Use a well-known internet browser, such as Chrome or Firefox, as they’re frequently updated with new security protections.
What to do if you suspect you are a victim of fraud
- Notify your bank, lenders and other financial institutions of the fraud.
- Update all online passwords.
- Dispute fraudulent transactions with the applicable institutions.
- Report the fraud, which can entail:
- Notifying local law enforcement and your state’s Attorney General. You may need to file a police report.
- Contacting each of the major credit bureaus (Equifax, Experian, TransUnion) and requesting that a fraud alert be placed on your file. To do so, you may need to provide proof that you’ve reported the incident to law enforcement.
- Filing a complaint with the Consumer Financial Protection Bureau.
- Filing a complaint with the Federal Trade Commission (FTC) or the FBI Internet Crime Compliant Center.
- Filing a complaint with the United States Postal Inspection Service, if any fraud-related communication was sent via U.S. mail.