‘TIS THE SEASON
For Charity Scams
12/11/06

 

Shortly after Hurricane Katrina slammed into the Gulf Coast, a website sprang up asking for donations for an ex-Air Force pilot who said he’d evacuated local political figures before the storm made landfall and was now airlifting medical supplies and rescuing critical patients with his own money.

It was all a scam. The man wasn’t a pilot, and he never delivered any supplies. He was simply pocketing the money collected through his website. Following an FBI investigation, he’s now in jail for fraud.

You’d think that con artists would be LEAST likely to strike following a major tragedy. Not so. We’ve seen them prey on the rising tide of goodwill and generosity in disaster after disaster—from Hurricane Katrina…to the Asian tsunami, from the Sago mine tragedy…to the London terrorist bombings.

And they’re MORE LIKELY to con you at this time of year, when they know you’re in a giving mood—and perhaps thinking of year-end tax deductions.
Don’t let it happen to you. The holidays are a time for giving, but not for giving unwisely. Jack Liao, a supervisory special agent at FBI Headquarters who specializes in fraud investigations, has some advice to reduce your chances of getting scammed:

• “Our basic rule of thumb is: when in doubt, check it out,” says Liao. “Ask a lot of questions and get information in writing if you’re not sure about a charity. If you get fuzzy or unsatisfying answers about the charity, its fundraising activities, and the tax-deductibility of donations, think about taking your money elsewhere.”
• “Make sure you get the actual name, address, and phone number of the charity before giving. Then check it out by going to the IRS website at www.irs.gov, which has an updated list of legitimate charities and non-profit groups, or by calling the IRS toll-free at (877) 829-5500. Another useful website is www.give.org, part of the Better Business Bureau’s Wise Giving Alliance.”
• “Don’t ever, ever give out personal or financial information to anyone who has contacted you out of the blue. That’s just leaving yourself wide open to the theft of your money and your identity.”
• “Don’t be intimidated into giving. You have the right to say no. If you’re really unsure who you’re talking with, just tell them you want to do some checking first and ask for a way to contact them later if you decide to give.”

Should you exercise due diligence even if there are no major charity drives this holiday season? “Absolutely,” says Liao. “There is more giving during the holidays overall and just about any cause can be exploited. So be crime smart—don’t give unless you’re really sure about who you’re giving to.”

And what if you do get scammed? “Contact the Federal Trade Commission toll-free at (877) FTC-HELP. Also report the fake charity to the state attorney general where you live and/or where the charity is located. By stepping forward, you can help put these scam artists out of business.” And that’s a holiday gift that keeps on giving.

 

Security and Fraud Alerts 

What to do if your Identity is stolen.

1. File a report with your local Police Dept. Request a case number

2. File a complaint with the Federal Trade Commission. 1-877-438-4338. www.consumer.gov/idtheft.

3. Contact one of the three credit bureaus to have a Fraud Alert put on your history. You will receive a free credit report and information.

Equifax 1-800-525-6285

Experian 1-888-397-3742

Trans Union 1-800-6807289

Continually monitor your credit report. There are monitoring services available that can assist you.

Internet/E-Mail Fraud Alert

Recently, there have been multiple e-mail fraud attempts, known as "Phishing", that were initiated via e-mail sent to both the general public and to some credit union members that appeared to be from NCUA. This false e-mail asked for the recipient to click on a link to verify their credit union account registration. If the recipient proceeded to do so, the link directed them to a false website and asked for their credit union account number and PIN, along with other personal information.

NCUA does not ask credit unions members for such personal information. Anyone who receives an e-mail that purports to be from NCUA and asks for account information should consider it to be a fraudulent attempt to obtain their personal account data for an illegal purpose and should not follow the instructions in the e-mail.

If you responded to such an e-mail and provided any confidential account information, please notify your credit union immediately of the scheme. You should also change your account's PIN, and take any additional action recommended by your credit union to protect your account.

Formal complaints can be filed with http://www.IC3.gov

Important Consumer Security Links

Resources:

Internet Crime Complaint Center   http://www.IC3.gov

ID Theft Information and Prevention http://www.consumer.gov/idtheft

Consumer Information Center http://www.pueblo.gsa.gov

The National Consumers League's Internet Fraud Watch has a flyer on fake check scams, including the ever-popular overpayment scams:  http://www.fraud.org/tips/internet/fakecheck.htm.

The United States Postal Inspection Service - Mail Fraud:

http://www.usps.com/postalinspectors/fraud/welcome.htm

The Federal Trade Commission - Identity Theft:

http://www.consumer.gov/idtheft/

The Federal Trade Commission Consumer Alert - Check Overpayment Scams:  Seller Beware:

http://www.ftc.gov/bcp/conline/pubs/alerts/overpayalrt.pdf

United States Secret Service - Know Your Money:

http://www.secretservice.gov/know_your_money.shtml

United States Postal Service - Money Order Security Features:

http://www.usps.com/missingmoneyorders/security.htm

United States Postal Service - US Postal Money Order Reference Card:

http://www.usps.com/missingmoneyorders/_pdf/Pub299.pdf