Holiday Charity Scams

The holidays are, for many people, a season of giving. Naturally, for cybercriminals, this can only mean one thing: a season of scamming.

Charity fraud – when a cyber-criminal uses a real or phony charitable organization to collect donated funds under false pretenses - is always a lucrative business for bad actors during the holidays. Cybercriminals know that we readily open our hearts and our wallets to help those who are struggling to rebuild after a natural disaster or act of war. Veteran fraud and disaster fraud are always reliable premises for a cyber scam.

During both the coronavirus pandemic and the early part of the conflict in Ukraine, scammers created thousands of fake pandemic and conflict-related charities to collect donations to aid victims and emergency response efforts. These sophisticated cybercriminals know that the headlines that capture our attention - hurricane relief, pandemic response, or regional conflict - and they are ready to capitalize on the intense emotions generated by catastrophic events. Especially against the backdrop of holiday generosity. Cybercriminals also fill our social media feeds, search results, and email boxes every holiday season with appeals to help autism, children’s cancer, homeless veterans, and a host of other worthy causes in the form of advertising for charitable organizations that are either outright, fake or highly dubious.

Holiday cyber scammers are also known for making phony phone calls thanking a potential target for a previous donation, a donation that was never actually made. This technique lowers the target's resistance to the pitch for another donation. Be aware of the following warning signs that a charitable cause may be up to no good:

1. Pressure to give right away - legitimate charities welcome your donation whenever you make it, and do not employ pressure tactics.
2. Requests for payment by cash, gift card, or wire transfer – these are cyber criminals, favored modes of payment since they are less traceable and open to less dispute resolution. Stick to credit cards.
3. Unknown, strange, or blocked phone numbers – strange text messages that purport to solicit donations for reputable charities should be treated with extreme caution. Always verify the number with an actual charitable organization, or choose another way to give.?

To stay clear of charity scams, use the following best practices for holiday giving:

1. Give to known, verified, or familiar organizations, and use their official channels and sites for making donations.
2. Be wary of charities purporting to aid recent high-profile disasters and conflict zones.
3. Always do your research on a charitable organization. Multiple online databases exist, rating and ranking legitimate charitable organizations.?Use these resources to help you make your giving safer.
4. Always give by check or credit card. Never use wire, transfers, gift cards, or cash for donations.
5. Don’t engage with unsolicited emails, phone calls, texts, or social media messages from charitable organizations, as they may not be legitimate.

For more information on how 46Solutions can help to keep your business and employees safe from cybercrime, contact us for a free technical consultation.