SACRAMENTO, Calif. — The holiday giving season is here, but for scammers, it’s the season of taking.
The Federal Trade Commission (FTC) says it received more than 2 million fraud reports in 2022, resulting in a loss of nearly $9 billion. The FTC also saw a 30% increase in money lost to fraud in 2022 compared to the previous year.
“You might get a phone call asking you for money from an organization that you may not have heard of, or maybe from one that you have heard of, so you need to make sure that the organization is legitimate,” said financial coach Maureen Paley.
The FTC says scammers reaching out to people through social media has led to big losses.
“I would be very cautious of phone calls, text messages, emails that look funny. They don't necessarily look official, especially ones that encourage you to text back, call back right away, click on this right away,” said Paley.
She says the people who are more likely to get approached for potential scams are those who have a consistent source of income and those who are more likely to answer their phone, like someone who is older or has a disability.
The scammers try to capitalize on the emotions of fear and excitement, so watch out for pressure campaigns. Any legitimate charity isn’t going to rush a donor.
“Step back and research those entities, those people to make sure that those things are legitimate because those are the signs of the scam,” said Paley.
Be careful with how you pay too. If someone wants donations in cash, by gift card or by wiring money, don’t do it. To be safer, pay by credit card or check.
Charity Navigator, Charity Watch and the Better Business Bureau’s Wise Giving Alliance are some credible websites to see if a charity is real or not. The IRS website will also show if a charity has tax-exempt status.
Keep in mind, only donations to a charity are tax-deductible. As for crowdfunding campaigns like GoFundMe or Kickstarter, people should be careful.
The FTC says the money doesn’t always go directly to the people it’s intended to help, it goes directly to whoever organized the account. The organizer is expected to tell the truth about what the money is being raised for and how it will be used, but it’s up to them to deliver on that promise.
Scammers and dishonest people can set up crowdfunding campaigns to raise money for themselves.
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