Welcome to the Senior Scam Alert, a column designed to inform seniors of scams and cons that are regularly committed against them. People over 65 are targeted for scams more than any other age group, and account for 56% of all fraud cases, even though they are only about 13% of the US population. The Better Business Bureau Wise Giving Allowance warns consumers to investigate before you donate! The Federal Trade Commission has issued an alert for consumers to be watchful of charity scams. They have compiled a FTC charity checklist; available on the FTCs official website (http://www.ftc.gov/). Charity scams are particularly immoral, because they prey on people who give to those in need. There are numerous variations on this type of scam. Scammers will often have business cards, fake ID cards, or other false identifying documents to make their charity sound more official. Scammers will use countless methods to try and obtain donations, and they usually ask for cash donations. They will go door-to-door, set up tables in malls, and outside grocery stores. Most internet charity e-mails are fraudulent. Beware of requests to support police or firefighters, especially if the request is door-to-door. MOST of these fundraisers are fraudulent. Police and fire departments never solicit donations door-to-door. If your local police department or fire department is having a legitimate fundraiser, contact the department directly and ask them. Always be more wary after a natural disaster. Inevitably, charity scammers surface after natural disasters; ready to take advantage of peoples good nature. Legitimate charities, such as the Red Cross, are then forced to compete for dollars with scammers that are stealing money. The FBI estimates there are over 2,300 Web sites dealing with aid for Hurricane Katrina victims. Most of these charitable websites are fakes. Here are some tips to make sure your charitable dollars dont go to a scammer! 1. Do not give cash; always donate with a check. Why?--because scammers cannot cash checks that are made out to The Red Cross, if they are not actually part of the organization. The check also becomes a record of your donation, and can help you organize your charitable deduction at tax time. 2. Ignore all e-mail solicitors; government consumer agencies agreealways ignore e-mail solicitations for charitable gifts. Do not give out your bank account, pin, or any other personal information via e-mail. If you would like to donate online, go directly to the organizations official website, and donate there. The SPCA, American Red Cross, and Salvation Army all have official websites that allow you to donate online. 3. Ask for a receipt; the receipt should have the date of the donation, the amount, and a statement that the donation is tax-deductible. According to the FTC, here are a few red flags to look out for when donating to a charity: 1.Beware of any charity that uses patriotic or current events as a hook to obtain contributions. 2.Call charities directly and donate. Do not provide any personal or bank information to a telemarketer or door-to-door solicitor. 3.Discuss the donation with a friend or family member before making the donationdo not fall prey to any high-pressure sales tactics. A more comprehensive list can be found on the Federal Trade Commission website. With this being said, do not be afraid to donate to your favorite charity, especially well-known organizations with an established track record of charitable work. Follow FTC guidelines, and protect yourself by paying with a check. Genuine charitable organizations are just as happy to receive checks as they are to receive cash. Sources: Better Business Bureau Wise Giving Alliance, National Consumer League Internet Fraud Watch, The Federal Trade Commission |
