“The holiday season is a time many Pennsylvanians will generously support charities and nonprofit organizations through financial contributions,” said Secretary of Banking and Securities Richard Vague. “Unfortunately, there are also many bad actors seeking to prey on this generosity by masquerading as charities while redirecting funds for personal enrichment.”
What are some red flags that may indicate you're about to share your hard earned money with someone only looking out for themselves?
Listen to our interview with Katrina Boyer, the Investor Education Coordinator of the Pennsylvania Department of Banking and Securities:
Red Flags of Charity Scams:
1. Similar Sounding Name: Scammers often use names that sound similar to legitimate charities to intentionally create confusion.
2. High Pressure Solicitation: Fraudsters will try to force a hasty decision by turning up the pressure.
3. 100% Guarantee – An organization that promises that 100% of your funds are going directly to an individual in need might require additional scrutiny.
4. Donation by Wire Transfer or Gift Card – Legitimate charities will not ask you to make payment via money order or wire transfer.
If you’ve been the victim of a charity scam, contact the Department of State’s Division of Charities Investigation Unit/Audits at RA-STBEICIU@pa.gov or use the online complaint form. You should also file a report with the Federal Trade Commission at ReportFraud.ftc.gov and contact local law enforcement through non-emergency channels.
For more information, follow @PAStateDept and @PABankingDept on Twitter or on Facebook at PA Department of State and PA Banking and Securities.
Anyone can contact DoBS at 1-800-PA-BANKS or 1-800-722-2657 to ask questions or file complaints about financial transactions, companies, or products.