Consumer Alert
Spot and stop dishonest charity fundraisers
By
Rosario Méndez
Attorney, Division of Consumer and Business Education, FTC
What’s worse than a bogus charity? A bogus charity with a dishonest fundraiser. The FTC has sued and stopped dishonest charity fundraisers that called people to get them to donate to fake charities. Some prey on your kindness and desire to help people impacted by weather emergencies or a disaster. But when you get a call from a charity fundraiser, how do you know the caller is telling you the truth?
Here’s some advice:
- Ask the caller specific questions:
- What is the charity’s name, phone number, or address? Write these down so you can confirm them later. Keep in mind that many charity names sound alike, and that sham charities often use names that are sound and look like names of legitimate charities.
- How much of your donation will go directly to the programs you want to support?
- Will your donation be tax-deductible? Not every call seeking a donation is from a charity. Some calls might be from Political Action Committees or other groups where donations are not deductible. See more questions to ask here.
- Resist the pressure to donate on the spot. After you’ve listened to the caller, hang up the phone and think about what they said. Then, go online and do your own research:
- Search for the organization’s name and phone number, plus the word “scam” or “complaint.” What you find might help you decide if you want to make that donation.
- Look up the organization’s name and address. Does it show up? If it doesn’t, that could be a sign the caller was lying to you.
- See what these rating organizations say about the charity: BBB Wise Giving Alliance, Charity Navigator, Charity Watch, and Candid.
If you get a donation request in the mail, do some research online before you donate. And if you spot a charity scam, report it to the FTC at ReportFraud.ftc.gov.
Note: This blog, originally posted on September 16, 2020, now has updated advice.
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slhsc
September 16, 2020
And watch your mail too! We have about three pounds of mail per week from fundraisers, from political, to religious, to the poor, to the veterans, etc. I have to “sift through” to find that one piece of mail that actually applies to our lives! You can opt-out of such via many websites and “refuse” the junk mail via the Post Office.
728899
September 16, 2020
Contact your state and federal government to insure the they are registered and in good standing. Every charity should be registered and filing reports
Looie
September 16, 2020
Better yet, don’t answer any calls from numbers you don’t recognize, and if you do, just hang up when they start their spiel.
Ron GouldDon't…
September 16, 2020
A suggestion. Make a list at beginning of the year of charities or organizations you might want to donate to.
Bob
September 16, 2020
Excellent advise!
joan
September 16, 2020
Thank you for these updates and i hope that these “people” get locked up for these awful and very disturbing so called charities !!
Publia
September 16, 2020
I have a policy that I do not give to any charity that calls me up; I insist on seeing something printed. My only exceptions are when it comes time to donate to the alumni fund at my high school or college. I do take those calls because they are students, and I think it’s a good thing to encourage philanthropy at an early age.
Golden Stater
August 31, 2021
Do not respond to any solicitations. Do your due diligence, know to whom you wish to donare, and initiate the donation yourself.
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Business Blog
Data Spotlight reveals what’s behind some of those social media ads
By
Lesley Fair
Sometimes being the “Home of . . .” is an honorific to be proud of. Kudos, Cleveland, for rock ‘n’ roll, and thank you, Buffalo, for your contribution to chicken wings. But the Birthplace of Frauds and Scams isn’t a nickname to be envied. According to an FTC Data Spotlight, reports from consumers suggest that in many instances, that’s becoming a moniker for social media.
The Data Spotlight reveals that the most frequently reported losses to fraud in social media in the first half of 2023 were from people who tried to buy something. Many of those scams started with an ad on Facebook or Instagram. Consumers recounted stories of undelivered merchandise and lost money – no-show clothes and electronics topped the list – but that’s not the only way that scammers are using social media to sting people.
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In the first half of 2023, more than 50% of the money consumers reported losing to fraud in social media went to investment scammers. A typical modus operandi may involve money-making promotions for purported investment opportunities, often using cryptocurrency as the hook. Scammers lure people to websites or apps with their own supposed “success stories,” but consumers ultimately end up empty-handed and with empty wallets.
According to the Data Spotlight, romance scams are another source of major financial losses facilitated through social media. In the first six months of 2023, half of the people who reported losing money to an online romance scam said it began through Facebook, Instagram, or Snapchat.
The FTC has advice your can share with colleagues, friends, and family.
- Limit who can see your posts and information on social media. All platforms collect information about you from your social media activities, but visit your privacy settings to set some restrictions.
- Did you get a message from a friend claiming they need money ASAP or they have a can’t-miss investment opportunity to share? There’s a good chance their account has been hacked. If they ask you to pay with cryptocurrency, a gift card, or a wire transfer, it’s a solid bet a scammer is behind the message, not someone you know.
- Of course, every now and then you hear about a great love story that began online. But we need to talk more about the tales that don’t end so happily. The FTC has advice on how to spot a romance scam.
Why should businesses care about scammers’ use of social media advertising? Because no reputable retailer wants its marketing messages tarnished by the proximity to fraud. If you spot a scam or a questionable business practice, report it to the FTC at ReportFraud.ftc.gov.
Tags:
- Consumer Protection
- Bureau of Consumer Protection
- Investment
- Online Dating
- Shopping
- Advertising and Marketing
- Online Advertising and Marketing
- Advertising and Marketing Basics
- Privacy and Security
- Data Security
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