7. Fake Charitable Organization Scam
They show up after every natural disaster or other tragic event. Sometimes they have the face of a young child in need of cancer treatment or an organ transplant.
What these charities have in common is that they’re fake. Fraudulent charities prey upon normal human emotions like generosity and empathy.
When a town is wiped out by a tornado, or a community is leveled by an earthquake, people want to feel like they’re doing something.
Unfortunately, all you’re doing is lining the pockets of the scammers. And they’re extremely good at what they do. Sometimes they have names that are similar to well-known organizations and websites that look nearly identical.
The worst actually use the names of real charities, emailing potential victims with links to a spoofed website. And everybody has seen how many individuals come forward to collect donations after a natural disaster. Most of them are well-intentioned and really do donate the money, but there are also a lot who just pocket the donations.
The key is to do your homework before making a donation. Look up the name of the charity and see what you can find out. One crucial fact is what percentage of donations actually goes to the stated purpose.
Legitimate charities typically spend around 10 percent on administrative costs, with the remaining 90 percent going to the people they’re supposed to be helping. Be wary of a charity that spends much more than 10 percent on administrative costs.
And don’t click on a link in an email, even if it appears to be from a charity you trust. Instead, type in the address yourself, so you’ll know you’re going to the right site.