Fake charity crisis: How scammers are swindling hundreds of thousands of dollars from Australians donating to good causes

  • The Australian Competition and Consumer Commission issued a warning 
  • They claim 2018 claims have already exceeded the whole of 2017 losses  
  • Generous Australians have been swindled out of over $320,000 this year
  • Sometimes scammers pose as volunteers from legitimate companies
  • Other times they choose to create entirely new charities to scam people 

By Brittany Chain For Daily Mail Australia

Published: 22:13 EDT, 22 October 2018 | Updated: 22:13 EDT, 22 October 2018

Generous Australians have been swindled out of over $320,000 this year alone as a result of fake charities.

The Australian Competition and Consumer Commission (ACCC) issued a warning for people wanting to donate to charities to follow precautions to ensure money is going to the legitimate source. 

2018 claims have already exceeded the whole of 2017 losses by thousands, with fears the number will continue to grow as the year progresses.

Generous Australians have been swindled out of over $320,000 this year alone as a result of fake charities

Generous Australians have been swindled out of over $320,000 this year alone as a result of fake charities

'Australians are very generous, donating billions each year to thousands of different charities. Unfortunately scammers are increasingly using people's generosity against them by setting up fake charities to fleece them,' ACCC Deputy Chair Delia Rickard said.

'This is a particularly appalling scam as beyond just stealing money from unsuspecting victims, the scammers also take money meant for legitimate charities. Donations are the lifeblood that supports charities and their ability to help people in need.'

Sometimes the scammers don't go to the extent of creating entirely new charities.

Instead, they will pose as volunteers for charities that are already existing, such as the Red Cross, RSPCA or Rural Fire Service, and door knock or call asking for donations.

They will pose as volunteers for charities that are already existing, such as the Red Cross, RSPCA or Rural Fire Service, and door knock or call asking for donations

They will pose as volunteers for charities that are already existing, such as the Red Cross, RSPCA or Rural Fire Service, and door knock or call asking for donations

The ACCC warns people to be extra vigilant for these types of scams, especially at times soon after disasters, as they will often use tragedy to cash out on sympathetic donors.

'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.

'If you have any doubts about who they are, do not pay, go the charity's legitimate website and pay through there.' Ms Rickard said. 

If you think you may have been scammed, the ACCC encourages you to report the incident to scam watch.

 

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Generous Australians are being scammed hundreds of thousands by hundreds of fake charities

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