Each year, Americans contribute over $400 billion to charity, but scammers exploit our generosity. Let’s explore the warning signs of charity scams, how to protect ourselves, and ensure our donations benefit legitimate causes.

How Fake Charity Scams Work

Scammers create deceptive charities that appear genuine and prey on our emotions. They capitalize on current events, such as public health emergencies or natural disasters, to gain sympathy. Beware of fake charities that mimic real ones or falsely claim affiliation. Their appeals may arrive via calls, emails, or social media, tugging at our heartstrings.

How To Protect Yourself

You can avoid falling for scams by being smart about how you give. Here are some steps you can take:

• When donating, use a payment type that’s easy to track, like a check or credit card.
• Don’t donate cash or gift cards or use wire transfers.
• Don’t trust unsolicited charity emails.
  • These could be a phishing scam designed to steal your financial information. Don’t click on any links and delete the message.
• Watch out for phone calls. Criminals use a trick called spoofing to disguise their caller ID information to look like a well-known organization. If the call seems suspicious, just hang up.
• Beware of requests for personal or financial information. A legitimate organization won’t ask for this.
• Don’t be pressured into donating immediately. A real charity can wait until you’re ready and won’t make you feel guilty or selfish if you don’t donate right away.

How To Make Sure Your Money Goes to a Good Cause

To make sure you’re giving to a legitimate charity, here’s what you can do:

• Do your research before donating. You don’t have to trust a charity just because it has a professional-looking website. Look up a charity’s rating with Give.org, CharityNavigator.org, or CharityWatch.org.
• If you’re not sure which charity to donate to, you can search online for a cause you believe in and phrases like “best charity” or “highly rated charity.”
• Avoid charities that are vague about where your donation goes or tell you your donation is tax-deductible when it’s not.
• You can search the IRS’s online database of tax-exempt organizations at IRS.gov. Donations to some organizations are not tax-deductible.

What To Do if You Are a Victim of a Charity Fraud

If you donate and have concerns you may have been scammed, here are some steps you can take to protect yourself:

• Review your banking and credit card statements to confirm your donations were charged correctly, and that you aren’t charged automatically every month.
• Contact your financial institution if you see any unauthorized charges.
• Report suspicious charities to the Federal Trade Commission at ReportFraud.FTC.gov, or your state consumer protection office. Also, contact your local police department.

Many deserving organizations depend on our financial support to do their work, whether it’s feeding the hungry, serving veterans, or finding the cure for a disease. Choose your charity carefully, so you can be sure that your money is going to a great cause. To learn more about protecting your finances, talk to your financial institution today.

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