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Fake charities: Avoiding a common type of consumer fraud

It seems like consumers have every opportunity to get duped or defrauded on a daily basis. In fact, it can be difficult to keep track of the many types and varieties of scams that fraudsters use to deceive us. One of the most common types of fraudulent schemes is known as a "fake charity."

Let's take a closer look at the fake charity scam so you can avoid becoming a victim of this fraud during the holiday season.

One of the problems with a fake charity is the fact that it's usually indistinguishable from a real charity. Real charities will ask you for a donation that it will use to help finance its charitable campaigns. Fake charities will do the same. The only difference is that when you give your money to a fake charity, the money will not be used to help anyone. It will simply go into the pockets of criminals, thieves and frauds.

Due to the prevalence of fake charities, people giving donations to any charity should perform a detailed check on the organization to ensure that it is legitimate. This will prevent the individuals from donating money that will not be used for the good that they intended.

Here are some tips to use when dealing with charities that will prevent you from becoming a victim of fraud:

  • Don't give cash.
  • Be careful immediately after a natural disaster.
  • Do not fall for high-pressure tactics.
  • Investigate the name and contact information for the organization.
  • Check that the charity is an IRS nonprofit.

Were you the victim of a fraudulent charity or another form of consumer fraud? Our law firm is available to talk with you about your legal rights and options.

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