Beware this festive season: Charity scams are rising as Christmas draws near!
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Christmas time can be a wonderful season filled with hope and joy. Everywhere, there’s a chance to spread love and kindness—from local charities helping those in need to non-profits that share invaluable resources to vulnerable communities.
However, this season of generosity also gives rise to a darker, more opportunistic side: charity scams.
Official data revealed that Australians lost a staggering $3.1 billion to scams last year, with a significant portion of these losses attributed to fake charity appeals.
As many people prepare to open their hearts and wallets to those less fortunate this Christmas, people must ensure that their donations reach the intended recipients and not lining the pockets of unscrupulous scammers.
The Head of the Australian Charities and Not-for-profits Commission (ACNC), Sue Woodward, has issued a warning about the rise in scammers exploiting the generosity of the public during the festive season.
'We know that at this time of year, many charities are running their Christmas and festive appeals. [...] They deserve the support of the public in terms of donations and volunteering,’ she said.
‘But unfortunately, what happens at the same time is that we can sometimes see a rise in scammers, people trying to take advantage of [the] generosity and take that money and not use it for the purpose that was given,' she added.
While hundreds of reports of fake charity scams were made to Scamwatch last year, Ms Woodward believed the actual number is likely much higher due to under-reporting.
Many victims of scams are often too embarrassed to report their experiences or simply don't bother, leading to a significant underestimation of the scale of the problem.
Heidi Snell, Executive General Manager at the National Anti-Scam Center at the ACCC, said that fake charities account for a large portion of scams that are reported.
'This year, we received 96 reports of fake charity scams, with losses of over $82,000. One in particular that we saw was door knockers claiming to be from Breast Cancer Foundations in New South Wales and Victoria, when in fact, they weren't. So we definitely do see these types of scams and so encourage consumers to be particularly alert for them,' she explained.
Scammers are known to exploit people's genuine concern for others in their community, as was the case during the Black Summer bushfires.
James Roberts, the General Manager of Group Fraud Management at the Commonwealth Bank, recalled the surge of fake bushfire charities that preyed upon Australians' goodwill and willingness to help out their fellow citizens.
The financial and emotional consequences of these scams can be substantial. Even scams that only involve losing a couple of hundred dollars can have a devastating effect on someone who is in a more financially precarious situation. The stress of paying bills after losing money to a scam can also be overwhelming.
However, the existence of fake charity scams shouldn't dissuade Australians from donating at a time of high need.
Ms Woodward encouraged the public to use the ACNC's free online Charity Register to check if a charity is legitimate.
The Charity Register lists 60,000 charities working across the country and offers a breakdown of key financial information, including who runs the charity, its total revenue and expenses, and how much it relies on volunteers.
You can visit it here: https://www.acnc.gov.au/tools/topic-guides/charity-register
Ms Woodward advised that the safest way to make a donation is through the information on this register rather than clicking on links or giving details over the phone.
She also highlighted that anyone can be a victim of scamming, but some groups, such as those for whom English is a second language, are especially vulnerable.
‘The festive season pressures are really high. But what we're urging you to do is just take this simple step of checking the register to try and make sure that your money goes where you want it to be,’ Ms Woodard stated.
Meanwhile, Mr Roberts urged people to be vigilant and look out for a few telling signs.
'Scammers often prey on trying to get you to urgently respond to something without thinking it through. So the first step to stop and take a pause and breathe is particularly important, then kind of moving on to check. Think about it. Does the content look right? Does the link? Often, the link doesn't look quite right, doesn't look like the genuine length or the message isn't expected. Take your time to check,’ he explained.
If you have been a scam victim, the first step is simple. 'The single most important thing to do is contact your bank, contact your bank, contact your bank. It's important to stop any further transactions coming out if they're unauthorised transactions,’ Mr Roberts advised.
‘Or alternatively, if you've made the transactions yourself because you've been tricked into doing it by some scammer. The faster you call the bank, the more opportunity there is for that bank to freeze that money wherever it went and recover it for you. So, singular piece of advice, contact the bank as soon as possible,' he continued.
Ms Snell emphasised the importance of victims of scamming contacting Scam Watch to protect others in the community.
'Anyone can be caught by a scam. It doesn't mean that you've done something silly. They're really, really sophisticated scammers these days, so they can catch anyone in it. And so we really encourage people,’ she said.
‘Don't be ashamed or embarrassed if you've been caught by a scam. But take the opportunity to tell your story, share it with your friends, share it with your family and report it to Scamwatch so that no one else gets tricked by the same scam,’ she added.
To report a scam, visit their website: https://www.scamwatch.gov.au/report-a-scam.
We also featured two instances of charity scams in our Scam Watch forum:
Have you or anyone you encountered a charity scam, members? Share your experience in the comments below!
However, this season of generosity also gives rise to a darker, more opportunistic side: charity scams.
Official data revealed that Australians lost a staggering $3.1 billion to scams last year, with a significant portion of these losses attributed to fake charity appeals.
As many people prepare to open their hearts and wallets to those less fortunate this Christmas, people must ensure that their donations reach the intended recipients and not lining the pockets of unscrupulous scammers.
Australians were warned about charity scams ahead of the Christmas season. Credit: Julia M Cameron/Pexels
The Head of the Australian Charities and Not-for-profits Commission (ACNC), Sue Woodward, has issued a warning about the rise in scammers exploiting the generosity of the public during the festive season.
'We know that at this time of year, many charities are running their Christmas and festive appeals. [...] They deserve the support of the public in terms of donations and volunteering,’ she said.
‘But unfortunately, what happens at the same time is that we can sometimes see a rise in scammers, people trying to take advantage of [the] generosity and take that money and not use it for the purpose that was given,' she added.
While hundreds of reports of fake charity scams were made to Scamwatch last year, Ms Woodward believed the actual number is likely much higher due to under-reporting.
Many victims of scams are often too embarrassed to report their experiences or simply don't bother, leading to a significant underestimation of the scale of the problem.
Heidi Snell, Executive General Manager at the National Anti-Scam Center at the ACCC, said that fake charities account for a large portion of scams that are reported.
'This year, we received 96 reports of fake charity scams, with losses of over $82,000. One in particular that we saw was door knockers claiming to be from Breast Cancer Foundations in New South Wales and Victoria, when in fact, they weren't. So we definitely do see these types of scams and so encourage consumers to be particularly alert for them,' she explained.
Scammers are known to exploit people's genuine concern for others in their community, as was the case during the Black Summer bushfires.
James Roberts, the General Manager of Group Fraud Management at the Commonwealth Bank, recalled the surge of fake bushfire charities that preyed upon Australians' goodwill and willingness to help out their fellow citizens.
The financial and emotional consequences of these scams can be substantial. Even scams that only involve losing a couple of hundred dollars can have a devastating effect on someone who is in a more financially precarious situation. The stress of paying bills after losing money to a scam can also be overwhelming.
However, the existence of fake charity scams shouldn't dissuade Australians from donating at a time of high need.
Ms Woodward encouraged the public to use the ACNC's free online Charity Register to check if a charity is legitimate.
The Charity Register lists 60,000 charities working across the country and offers a breakdown of key financial information, including who runs the charity, its total revenue and expenses, and how much it relies on volunteers.
You can visit it here: https://www.acnc.gov.au/tools/topic-guides/charity-register
Ms Woodward advised that the safest way to make a donation is through the information on this register rather than clicking on links or giving details over the phone.
She also highlighted that anyone can be a victim of scamming, but some groups, such as those for whom English is a second language, are especially vulnerable.
‘The festive season pressures are really high. But what we're urging you to do is just take this simple step of checking the register to try and make sure that your money goes where you want it to be,’ Ms Woodard stated.
Meanwhile, Mr Roberts urged people to be vigilant and look out for a few telling signs.
'Scammers often prey on trying to get you to urgently respond to something without thinking it through. So the first step to stop and take a pause and breathe is particularly important, then kind of moving on to check. Think about it. Does the content look right? Does the link? Often, the link doesn't look quite right, doesn't look like the genuine length or the message isn't expected. Take your time to check,’ he explained.
If you have been a scam victim, the first step is simple. 'The single most important thing to do is contact your bank, contact your bank, contact your bank. It's important to stop any further transactions coming out if they're unauthorised transactions,’ Mr Roberts advised.
‘Or alternatively, if you've made the transactions yourself because you've been tricked into doing it by some scammer. The faster you call the bank, the more opportunity there is for that bank to freeze that money wherever it went and recover it for you. So, singular piece of advice, contact the bank as soon as possible,' he continued.
Ms Snell emphasised the importance of victims of scamming contacting Scam Watch to protect others in the community.
'Anyone can be caught by a scam. It doesn't mean that you've done something silly. They're really, really sophisticated scammers these days, so they can catch anyone in it. And so we really encourage people,’ she said.
‘Don't be ashamed or embarrassed if you've been caught by a scam. But take the opportunity to tell your story, share it with your friends, share it with your family and report it to Scamwatch so that no one else gets tricked by the same scam,’ she added.
To report a scam, visit their website: https://www.scamwatch.gov.au/report-a-scam.
- Beware: Scammers may use devastating bushfires as a tactic
- Don't Fall Prey: Aussies Warned about Heartless Scam Using a Sick Child's Plight
Have you or anyone you encountered a charity scam, members? Share your experience in the comments below!
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fire brigade Authority and shut him down before he could say another word.
