Ahead of Giving Tuesday, Attorney General Mayes Urges Arizonans to Protect Themselves from Charity Scams

PHOENIX – With the holidays and the end of the year quickly approaching, Arizona Attorney General Kris Mayes wants to remind consumers to be wary of scam artists when donating to charities. Often times, scam artists will use names that sound very similar to well-known, trusted charities or pull at the heart strings of donors over a tragedy to lure consumers into donating to fake charities. Organizations receiving donations can also become victims of charity scams.  A typical scam to an organization involves fraudulent donors sending counterfeit checks only to follow up with a request to return a portion of the funds before the organization knows the funds are bogus.  

“While I applaud Arizonans willing to donate to charities at this time of the year, it is important to remember that there are scammers trying to take advantage of your good will,” says Attorney General Kris Mayes. “Taking a few precautions on the front end can ensure that donations serve a charitable good, instead of lining the pockets of scammers.”

AG Mayes Offers the following tips to make sure your donations go to legitimate charities:

For Individuals Donating to Charity:

• Verify the Name of the Charity. Scam artists often use names that sound very similar to well-known, trusted charities. Double-check the exact name and website address before donating.
• Research the Charity. Search the charity's name online with words like "complaint," "review," or "scam".
• Use independent charity-rating organizations such as Charity Watch and BBB Wise Giving Alliance to verify legitimacy of the charity and how contributions are spent.
• Also ask specific questions of the charity. Find out how much of your donation will go directly to the charitable programs versus fundraising and administrative costs.
• Don't Be Rushed. Legitimate charities will be happy to accept your donation whenever you are ready; they won't pressure you for an immediate commitment.
• Protect your personal information. Don’t provide personal or financial information such as your social security number or bank account details to someone on the phone, by text, by email or on social media asking for a donation to a charity.  
• Don’t donate by debit card, gift cards, cryptocurrency, wire transfers, or cash apps. Once you send the funds, it is difficult to get your money back and these forms of payments should be considered the same as using cash.  The safest methods are to pay by credit card or check.  You may have some protection and you will also have a record of your donation for tax purposes.  
• After you donate, keep a record of all donations for tax purposes. Review your statements closely to make sure you are only charged the amount you agreed to donate.

For Charities/Organizations Receiving Donations:

• Verify Donors. Be cautious of large, unsolicited donations, especially from new or unknown individuals or organizations, and verify their identity and legitimacy.  Contact the donor directly using official channels, not through the contact information provided in suspicious emails or letters.
• Check Legitimacy. Verify the check was issued by a legitimate bank. Do not use any contact information provided on the check itself; instead, look up the official bank phone number from an independent source to verify the check's validity. 
• Wait for Checks to Fully Clear. Do not refund any part of a donation until the bank confirms the check has fully cleared, which can take weeks. The availability of funds in an account does not mean the check is legitimate.
• Establish Internal Policies. Implement strong financial controls, such as requiring multiple approvals for any outgoing wire transfers or refund payments.
• Educate your Team. Make sure that all staff and volunteers are aware of possible scams and understand the importance of verifying checks and donations. 

If you believe you have been the victim of consumer fraud or unfair practices, you can file a complaint with the Attorney General’s Office at www.azag.gov/consumer.  If you need a complaint form sent to you, you can contact the Attorney General’s Office in Phoenix at (602) 542-5763, in Tucson at (520) 628-6648, or outside the Phoenix and Tucson metro areas at (800) 352-8431.
 
Report your scam to the FTC. Scams can also be reported to the Better Business Bureaus' Scam Tracker.