IRS Commissioner On Avoiding New Charity Scams
I always try to be on alert with any email, text, or phone call of the possibility that it may be a scam. Last month I shared the scam story of a friend who fell prey. I just learned about a neighbor who gave control of their computer to a scammer thinking they worked for Microsoft. It’s a scam that’s happening for years, but if you’ve never heard of it, it’s new to you.
The clean-up continues after Hurricanes Milton and Helene, and the Internal Revenue Service is cautioning taxpayers of scammers who use fake charities to gather personal and financial data from unsuspecting donors. The key is always to suspect something.
Believe it or not, there are bad people out there setting up fake charities to take advantage of your generosity during natural disasters and other tragic events.
IRS Commissioner David Werfel said, “Many people want to help survivors and their families by donating to charities, too often, criminals take advantage of would-be donors’ kindness by stealing money and personal information from well-meaning taxpayers. You should never feel pressured by solicitors to immediately give to a charity. It’s important to do the research to verify if they’re authentic first.”
Officials recommend that anyone interested in making donations should first check the Tax-Exempt Organization Search (TEOS) tool on IRS.gov to help find or verify qualified, legitimate charities. With this tool, people can verify the legitimacy of a charity, check its eligibility to receive tax-deductible charitable contributions and search for information about an organization’s tax-exempt status and filings.
How to Avoid Fake Charity Scams
Scammers frequently use names that sound like well-known charities to confuse people. Fake charity bad actors may use emails, fake websites, or alter their caller ID to make it look like a real charity is calling to solicit donations. You should always ask the fundraiser for the charity’s name, website and mailing address so you can confirm the information. Again, it’s always best to use the TEOS tool to verify if an organization is a legitimate tax-exempt charity.
Another rule is to never give to charities that ask for donations by giving numbers from a gift card or by wiring money. That’s always a scam. It’s safest to pay by credit card or check, but only after verifying the charity is real.
If you do decide to donate, there’s no need to share a lot of information. Scammers are shooting for both money and personal information. There’s never a need to share your Social Security number or personal identification numbers. If all you give is your credit card information, it can easily be rectified.
This tip is important but hard for many to do. Scammers will pressure people into making an immediate payment. There are many people, in my family alone, who aren’t comfortable saying no and are coerced into making bad decisions. If it’s truly a legitimate charity, they don’t care when you donate so they will never rush you.
The IRS also asks that if you suspect a fake or suspicious charity to check out the FBI’s resources on Charity and Disaster Fraud.
A Few More Scams Worth Mentioning
I received a scam email recently, but the good kind. It was from my bank, and they shared some banking scams and ways to avoid them.
The first is an imposter scam that involves a package that couldn’t be delivered and you need to reschedule delivery. You may be asked to provide a code, remote access, or move money to another account. If you do this they will access your account and your money. The bank will never ask you to do any of these things. Always contact the bank directly and separately for any transactions.
Investment scams are common and offer a quick return on your investment. Initially, you invest your money and receive small returns. Then you’re convinced to invest larger amounts of money, and that’s when the scammer and communications disappear. It’s essential to be diligent, do your homework, and validate an investment offer.
I mentioned this earlier about a family member. Scammers reach out through a computer pop-up or phone call and claim there’s an issue with your device. You are then instructed on how to provide remote access to your device and to download an app to fix the issue. Once you give them access or download the app, the scammer has control of your personal information. They install malware on your device and hold it hostage. Then they demand a ransom payment before they give back access to your computer.
It’s very important to simply slow down and use caution if pressured to act quickly. Don’t rush and ask a million questions. If a scammer feels you may be suspicious, they’ll most likely move on quickly.
You Should Know These New Scams That Are Trending
Watch out for the new 'check cooking scam'
The AARP warns of a new scam called the “check cooking scam.” The AARP states, “In check cooking, thieves take a digital picture of a stolen check and then use commercially available software to alter it.” It can look super real, but it’s fake. So, how do you stay safe? “Consider using a safer payment method, such as a credit card,” they suggest.
Getty Images / Andrey Popov
Look out for the 'delayed-action sweepstakes scam'
The AARP states also warns of a new sweepstakes scam where “instead of trying to get you to pay taxes or other fees in advance to collect the nonexistent prize, the scammers will ask for personal information so that they can validate you and set up the payout.” Just say no.
Getty Images / Torsten Asmus
Watch out for AI-powered scams
These days, AI scams are big. Experian.com says today, scammers use technology to “write more convincing and natural-sounding phishing emails and text messages.” They can also “Impersonate the victim’s friend or relative and ask for money as part of a grandparent scam.” It’s scary stuff. Beware of anything that sounds too crazy, as these can often seem far-fetched, but AI makes them look real.
Getty Images / Userba011d64_201
Beware of student loan forgiveness scams
Experian.com says that student loan forgiveness scams are on the rise. They note that, “scammers may contact you via phone or create phony application sites aimed at stealing your Social Security number or your bank account information.” Don’t give out your information. If it sounds too good to be true, it is.
Getty Images / Pla2na
Look out for the Paris Olympics scam
This one is really wild. With the games on the way, scammers can use the games to scam you. The AARP states, “A scammer hacks someone’s email account, and shortly after, all of that person’s contacts will receive the same message — something to the effect of, ‘Hey guys, I’m over in Paris and my wallet got stolen! Can anyone please help me out by sending gift cards or a Venmo deposit?”
Getty Images / Marcio-Binow-Da-Silva
The best way to avoid scams
Whether the scam is new or old, the best way to avoid it is to stop and think about what’s happening. These scam artists are super good at what they do, but if you just stop for a moment and really think out any actions, you can avoid making a rash decision that could cost you.
Getty Images / Ridofranz
