In Australia, the Albanese Government encourages citizens to support charity organisations. But, it's important to watch out for fake charity scams. These scams often happen in December and January. Scammers pretend to be legitimate charities or make up fake charity organisations to ask for donations.
The ACCC's Scamwatch has seen more losses from charity fraud over the last four years. Scammers use many ways to trick people. They might talk to you on the street, set up fake websites, or call and email asking for money. This is often after a real disaster or emergency.
Key Takeaways
- Scammers often pretend to be well-known charities like the Red Cross, RSPCA, and Rural Fire Service to trick Australians.
- Real charities won't ask for money upfront through money orders, wire transfers, or Bitcoin.
- Always check who you're talking to at charities and ask for a receipt before giving money.
- It's safer to fill out donation forms and send them directly to charities in sealed envelopes.
- Scamwatch has resources to help people spot, avoid, and report charity scams.
The Rise of Charity Phone Scams in Australia
Australians have seen a big rise in charity scams lately. Scamwatch says there's been a nearly 70% jump in charity scam reports since 2019. Over $138,000 was lost to these scams in just the first seven months of 2020.
Scammers often call or email, saying they're from real charities. They try to get people to give money fast, using methods like cash, gift cards, or apps that can't be traced.
The Alarming Trends in Charity Fraud
- In 2019, Scamwatch got 646 reports of charity scams, with losses over $277,000.
- By 2020, reports jumped to 1,081, with losses over $138,000.
- The biggest loss in 2019 was $50,000, and in 2020, it was $30,000.
- Scams went up a lot because of fake claims about bushfires and other big disasters.
Real charities usually take donations by credit card or cheque for tax reasons. Scammers prefer cash, gift cards, or apps that can't be traced. Real charities are listed with the Australian Charities and Not-For-Profits Commission (ACNC) and share their details openly.
It's important for Australians to watch out for charity scams. Always check if an organisation is real before giving money. If you think a scam is happening, tell the authorities, like the ACCC's Scamwatch service.
Tactics Used by Charity Phone Scammers
Scammers use many tricks to fool people and take advantage of their kindness. They might meet you on the street, saying they're from a charity or a cause, like a monk asking for donations. They also create fake websites that look like real charities, making it hard to tell what's real.
Ms. Rickard from the Australian Charities and Not-for-profits Commission says some scammers pretend to be big charities like the Red Cross or RSPCA. These fake charities aim to trick people into giving money, but they don't help the cause they claim to support.
Scammers might call or email you, asking for money right away or telling you to visit a fake website. They use stories that tug at your heartstrings and make you feel like you must act fast. This makes it tough to check if their request is genuine.
To stay safe, it's important to be careful with any charity requests, whether by phone, email, or in person. Knowing about these tricks helps you make smart choices about giving. This way, you can be sure your money goes where it's needed.
Charity Phone Scams: How to Identify Them
Warning Signs to Watch Out For
Scammers often pretend to be charities to trick people into giving money. Be careful when you get calls asking for donations. A big warning sign is if they don't want to tell you how your donation will be used. Real charities are open about their work and should share this info easily.
Another warning sign is if they push you to donate right away over the phone. This is often to stop you from checking if they're real. Always ask to see their ID and check the charity out before you give money.
Scammers might also make fake websites that look like real charity sites. Make sure to check if a charity is real before you give money. If you're unsure, tell your bank and report the scam.
Knowing these warning signs and doing your homework on charities can protect you from fake ones. This way, you can make sure your donation goes to a good cause.
Protecting Yourself from Charity Phone Scams
Australians can avoid fake charity calls by being careful. First, check if the charity is registered and has verified fundraising campaigns. Make sure it's on the Australian Charities and Not-for-profits Commission's Charity Register.
Precautions to Take Before Making Donations
Don't click on links from unknown emails or social media that could be fake. Go straight to the charity's official website instead. Be careful with your credit card and bank details online or on social media. If a charity calls you, tell them you'll call back to check if it's real.
- Check if the charity is registered and listed on the Australian Charities and Not-for-profits Commission website.
- Avoid providing personal or financial information over the phone or through unsolicited emails or social media posts.
- Call the charity directly to confirm the legitimacy of the fundraising campaign before making a donation.
- Be cautious of door-to-door solicitations, as scammers may impersonate legitimate charities.
- Avoid sending money via money order, wire transfer, or international funds transfer, as these payment methods are often used in charity scams.
By following these steps, Australians can stay safe from charity phone scams. This way, they can make sure their donations help real charities.
Reporting Charity Phone Scams and Supporting Legitimate Causes
If you've fallen victim to a charity phone scam, it's key to report it to Scamwatch. This government initiative aims to protect Australians from scams. By reporting to Scamwatch, you help stop these scams and ensure your money goes to a real cause, not scammers.
Charity phone scams have surged, with over 790 reports in 2022. Australians lost $418,000 to fake charities last year, says the Australian Charities and Not-for-profits Commission (ACNC). The ACNC commissioner believes the true financial losses are likely much higher, as many victims didn't report the scams.
Scammers set up fake charities that look like real ones, preying on our kindness, especially during disasters. They phone or email unsolicited, trying to trick people into sending money. Don't fall for it by clicking links or giving credit card details.
To dodge these scams, always check the charity's real number before sending money. And don't forget to report it to Scamwatch to shield others from these scams.
By backing real charities and reporting scams to Scamwatch, we all play a crucial part in protecting ourselves and our communities. This stops scammers from exploiting unsolicited emails and calls.
Conclusion
Charity phone scams are becoming more common in Australia. Scammers often pretend to be fake charities or real ones to trick people. Last year, 36% of charity workers were tricked or tried to be tricked by fraud.
But there's hope. People can protect themselves by being careful and checking charities before giving money. Reporting any odd behaviour helps too. Using advice from trusted groups and banks' AI systems can also help spot scams.
Stopping charity phone scams needs everyone to work together. By staying alert and taking action, Australians can make sure their donations help those in need. This way, we can all make a real difference in our communities.
FAQ
What are charity phone scams?
Charity phone scams happen when scammers pretend to be real charities or make fake ones. They try to get money from people without their permission.
How common are charity phone scams in Australia?
In Australia, charity phone scams are becoming more common. The ACCC's Scamwatch has seen more reports and losses over the past four years. For example, in 2018, there were 689 reports of fake charity scams, with over $320,000 lost.
How do charity phone scammers operate?
Scammers might approach people on the street or set up fake websites. They could also call or email, asking for donations, especially after real disasters. They might pretend to be well-known charities like the Red Cross or RSPCA.
How can I identify a charity phone scam?
Look out for signs like being asked for cash upfront, being rushed to donate, or not being given details on how the money will be used. If unsure, always check with the charity directly.
How can I protect myself from charity phone scams?
To stay safe, only give to well-known, registered charities. Don't click on links from unknown emails or social media. Be careful with your personal and financial info. Always check the charity's official site and call them to confirm any fundraising requests.
What should I do if I suspect a charity phone scam?
If you think it's a scam, report it to Scamwatch at www.scamwatch.gov.au. Tell your bank if you've shared financial details. Follow @scamwatch_gov on Twitter and sign up for Scamwatch radar alerts to keep up with the latest scams.
