Charity scams

Estimated reading time
  5 min

Key points

• Scammers often impersonate legitimate charities to trick individuals into donating money to non-existent or misrepresented causes.
  
  
• Look out for unsolicited donation requests, suspicious payment methods, unrealistic donation appeals, aggressive or high-pressure tactics, and suspicious communications outside of official channels, like random emails and text messages, which might signal a scam from a fake charity.
  
  
• Be sure to verify the charity’s registration with the Australian Charities and Not-for-profits Commission (ACNC) and double-check the charity’s authenticity before donating.

Supporting a worthy cause can be a rewarding experience, especially when you feel your contribution makes a real difference. 

Whether it’s helping children in need, supporting environmental efforts, or contributing to medical research, many Australians find joy and generosity in giving to charity. Unfortunately, scammers are aware of this goodwill and sometimes create fake charities to take advantage of it.

Each year, countless individuals lose money to fraudulent charities, believing they're supporting a noble cause, when in reality their donations are lining the pockets of criminals. Scammers may reach out via phone calls, emails, or social media, using heart-wrenching stories or fabricated appeals to tug at your emotions to donate quickly. “Scammers are highly skilled at mimicking genuine charities, even going so far as to use familiar logos, names, and heart-wrenching stories to build trust,” says Karen Koscak from ANZ’s Security Education & Resilience team. “They exploit your emotions, urging you to act quickly, but their true aim is to steal your money.”

Understanding how to help spot these scams is crucial for ensuring your donations truly help those in need.

What is a charity scam?

A charity scam occurs when scammers create a fraudulent charity or fundraise under a false identity to steal money from well-meaning individuals. Scammers use various tactics, such as fake websites, social media campaigns, and even phone calls to convince people to donate to causes that either don’t exist or are not as represented. Scammers may even impersonate well-known charitable organisations during natural disasters, international crises, or high-profile events. By exploiting people’s emotional responses to such events, they increase their chances of getting donations without any intention of helping those in need.

How do charity scams work?

Scammers typically employ a range of methods to trick people into making donations:

• Create websites or social media profiles that closely resemble those of legitimate charities. These fake sites may use stolen images, fake testimonials, and misleading descriptions to appear convincing.
  
  
• Send emails or text messages that look like they are from legitimate charity organisations. These messages often contain links to fake donation pages designed to steal personal or financial information.
  
  
• Go door-to-door or call potential donors or approach individuals on the street asking for money on behalf of a fake charity. They may use high-pressure tactics or emotional appeals to coerce donations.
  
  
• Set up fake fundraising campaigns on crowdfunding platforms, making it look like they are raising money for a legitimate cause. In many cases, these campaigns use stolen images or emotional stories to persuade people to donate.

What are the warning signs of a fraudulent charity?

• Be cautious if the scammers claim that 100% of donations go directly to the cause, which is often a red flag.
  
  
• Be wary of any unsolicited calls, emails, or social media messages asking for donations. Legitimate charities typically don’t reach out in such aggressive or unsolicited ways.
  
  
• If a charity asks for payment through unconventional methods such as bank transfers, gift cards, or cryptocurrency, this is a significant warning sign.
  
  
• Fake charities often try to pressure you into donating immediately, using tactics like creating a sense of urgency. They might claim that you need to donate quickly to take advantage of a matching donation or that the cause needs help immediately.
  
  
• Legitimate charities are transparent about their financials, their causes, and how donations are used. If you can’t easily find this information or if the charity seems unwilling to provide it, this should raise concerns.

How to protect yourself from charity fraud?

It’s essential to do your research before donating to ensure your contribution reaches the right hands. Here are some simple steps to follow to avoid falling victim to charity scams:

• In Australia, legitimate charities are registered with the Australian Charities and Not-for-profits Commission (ACNC). You can easily verify whether an organisation is registered by using the ACNC Charity Register. The register contains details about each charity, including their registration status, purpose(s), and financial information.
  
  
• Avoid clicking on links in unsolicited emails or social media posts. Instead, visit the charity’s official website directly by typing the URL into your browser.
  
  
• If you receive a link to a crowdfunding campaign, do not click directly on it from an unsolicited email. Instead, search for the campaign on the official site.
  
  
• Always ask for identification and proof of authority from anyone seeking a donation and verify their details with the charity or a professional fundraising association (for example, the Fundraising Institute Australia or Public Fundraising Regulatory Association) before providing personal information.
  
  
• Scammers may attempt to steal your personal or financial information under the guise of a donation request. Never provide sensitive details like your credit card or bank account information unless you are sure the charity is legitimate.
  
  
• A legitimate charity will be transparent about how donations are used. Visit the charity’s official website to review their financial reports, the projects they support, and how your donation will make a difference. If you cannot find this information, it’s a red flag.
  
  
• Avoid using bank transfers or sending cash, as these methods are difficult to trace. Credit cards, PayPal, or other secure payment systems offer more protection and can sometimes be reversed if fraud is detected.
  
  
• If donating online, use trusted platforms such as the Australian Charities and Not-for-profits Commission (ACNC), or other reputable fundraising websites that have security measures in place to protect donors.
  
  
• Scammers often play on emotions, especially during times of crisis or tragedy. While it’s natural to want to help, take a moment to verify the legitimacy of the charity before you donate.

What to do if you think you’ve been scammed

• If you’ve donated using a credit card or bank transfer, contact your financial institution immediately. If you’re an ANZ business customer, contact us immediately to report the fraud.
  
  
• If you shared business credit card details, ‘block’ or cancel those cards immediately. If your cards are with ANZ, you can report the stolen card through the ANZ app or by calling us.
  
  
• Alert the relevant authorities, including the Australian Competition and Consumer Commission (ACCC) and Australian Charities and Not-for-profits Commission (ACNC), so they can investigate and warn others.
  
  
• Keep an eye on your bank and credit card statements for any suspicious activity, and report anything unusual to your bank.
  
  
• Keep any communications, receipts, or confirmation emails related to the donation. These could be helpful if authorities need to investigate the scam.

Who can you contact if you’ve been scammed?

• Report the scam to Scamwatch or to the Australian Signals Directorate’s Australian Cyber Security Centre’s ReportCyber.
  
  
• For phishing or identity theft associated with government accounts such as Centrelink, Medicare, or Child Support, contact the Services Australia scams and identity helpdesk on 1800 941 126 or visit their website.
  
  
• You can also contact IDCare, a not-for-profit organisation providing support to those experiencing identity and cyber security concerns.
  
  
• Contact your bank immediately if you have shared personal or financial information.
  
  
• If you’re an ANZ customer, you can report fraud or suspicious activity in multiple ways, such as through the ANZ app or by calling us.