Charity Scams: How to Give Safely and Spot Fake Charities

Most of us want to help, especially after a hurricane, a wildfire, or a tragedy in the news, or when asked to support veterans, sick children, or first responders. Scammers know this, and they move quickly to set up fake charities and look-alike names that catch your generosity at exactly the right emotional moment.

The good news is that giving safely takes only a few simple habits. This guide explains how charity scams work, shows a real example, and gives you a short checklist so your gift reaches people who need it instead of a thief.

What it is

A charity scam uses a fake or look-alike charity to collect donations that never reach anyone in need. Some scammers invent a brand-new “relief fund.” Others copy the name of a well-known charity, changing a single word so it sounds familiar. Many appear within hours of a disaster, when urgency is high and verification feels like a luxury.

The pressure is the tell. A legitimate charity is happy to receive your gift today, tomorrow, or next week, and will gladly tell you exactly how the money is used. A scammer needs you to give right now, before you have a chance to check.

How it works

1. You are contacted by phone, text, email, social media, or even in person, asking for a donation.
2. The cause sounds urgent and emotional: disaster relief, veterans, police or firefighters, or a sick child.
3. They pressure you to give immediately and ask for gift cards, a wire transfer, or cryptocurrency.
4. The money goes straight to the scammer, and a fake fund or crowdfunding page can vanish overnight.

After major disasters, fake relief funds and crowdfunding pages can appear almost instantly, sometimes using real photos and the names of real victims. Veterans causes are also heavily abused, because the appeal to honor service members lowers people’s guard.

A real example

After a destructive hurricane fills the news, Helen, 75, gets a warm call thanking her for her past support and asking for an urgent gift to a “disaster relief fund” with a name very close to a national charity she knows and trusts. The caller describes families without power and water, says the need is immediate, and asks Helen to read off gift-card numbers so help can go out today.

Helen, wanting to do her part, buys $500 in gift cards and shares the numbers. The charity does not exist, the photos were taken from news coverage, and the gift cards are emptied within minutes. A real relief organization would never have asked her to pay by gift card or to act before she could verify the cause.

By the numbers

• In 2024, the FBI’s IC3 received more than 4,500 complaints reporting about $96 million in losses to fake charities, crowdfunding, and disaster-relief schemes (FBI IC3).
• Veterans, service members, and their families reported losing $477 million to fraud in 2023, with a median loss about 20 percent higher than civilians (FTC).
• Fake charities reliably spike right after natural disasters and mass-casualty events (FBI IC3).

Red flags to watch for

• Pressure to give immediately, before you can check the charity.
• Requests for gift cards, wire transfers, or cryptocurrency.
• A name that is close to, but not exactly, a charity you know.
• Vague answers about how donations are used.
• A thank-you for a past gift you do not remember making.

How to protect yourself

1. Slow down. A real charity is glad to receive your gift after you have had a chance to look it up.
2. Give through the charity’s official website that you find yourself, not through a link or number someone sends you.
3. Check the group at a rating site such as the BBB Wise Giving Alliance, Charity Navigator, or your state’s charity regulator.
4. Pay by credit card or check, never gift cards or crypto, and always keep a record.
5. Reduce the solicitations. Scammers buy donor and senior contact lists, often sourced from data-broker and people-search sites. Removing your information from those sites, which a privacy or data-removal service can do for you, can cut down on fraudulent appeals.
6. Decide your giving in advance. Choosing a few charities you support each year makes it easy to say “no thank you” to surprise, high-pressure requests.

If you’ve already responded

If you paid by credit card, contact your card company to dispute the charge. If you used gift cards, call the card company right away with the numbers. Report it to the FTC at ReportFraud.ftc.gov, and for disaster or crowdfunding fraud, to the FBI at ic3.gov. Reporting helps investigators shut down fake funds before they reach more people.

In the news

• FBI IC3: Beware of charitable fraud related to mass-casualty and disaster events
• FTC: Stop veteran charity scams

Sources

• FTC: Charity Scams
• FTC: Charity scams after a disaster
• FBI IC3: Charitable fraud PSA
• FBI IC3: Elder Fraud