The ACCC’s Scamwatch program has so far in 2018 received 689 reports of fake charities scams, with more than $320,000 in reported losses, according to a statement.
This compares to the whole of 2017 where reported losses were $313,563.
The ACCC noted that fake charities operate in a number of different ways, such as scammers approaching people on the street (for example posing as a monk, or a collector for a specific cause) or at their front door.
Scammers may also set up fake websites which look similar to those operated by real charities, and some will call or email people requesting donations, the ACCC said.
ACCC deputy chair Delia Rickard said scammers are increasingly using people’s generosity against them by setting up fake charities to fleece them.
“This is a particularly appalling scam as beyond just stealing money from unsuspecting victims, the scammers also take money meant for legitimate charities,” she said.
“The scammers have no shame. If they’re not creating fake charities, they will impersonate real ones like the Red Cross, RSPCA, or Rural Fire Service.
“It’s important people are aware of these scams and take precautions to ensure their money is going to a genuine charity.”
Ms Rickard said people can ensure their donation is going to a legitimate charity by phoning them directly or making a donation via their website, or they can check the charity is legitimate by first looking up their credentials on the publicly available Australian Charities and Not-for-Profits Commission website.
“Legitimate charities do employ door knockers and street collectors. But rather than just hand your money over, ask to see their identification and don’t be shy about asking questions about the charity such as how the proceeds will be used,” Ms Rickard said.
“If you have any doubts about who they are, do not pay, go the charity’s legitimate website and pay through there.
“Also, avoid any arrangement with a stranger that asks for up-front payment via money order, wire transfer, international funds transfer, pre-loaded card or electronic currency, like bitcoin. Legitimate charities don’t solicit donations in this way.”
