In the wake of the recent Nepal-Tibet floods, the Customer Owned Banking Association (COBA) is urging Australians to stay alert to charity scams, including fake websites, crowdfunding campaigns and other fake donation appeals.
In the chaos following severe weather events and natural disasters, scammers unfortunately see an opportunity to take advantage of people’s generosity, COBA Head of Financial Crimes and Cyber Resilience Martin Latimer explained.
“The flood disaster in Nepal and Tibet is a terrible tragedy, and our thoughts are with those grieving and anxiously awaiting news about their loved ones. It’s natural that many of us will want to help. Unfortunately, scammers recognise that natural disasters like this can trigger strong emotional responses, and they try to create a false sense of urgency to convince people to donate quickly without checking whether an appeal is genuine,” he said.
“Additionally, there are new trends of scammers using AI-generated images, videos or fabricated stories to create convincing donation appeals. If you see anything online that seems highly emotional or difficult to verify, check trusted news outlets and official charity channels before donating.”
COBA’s Financial Crimes and Cyber Resilience team has outlined some more tips to help ensure your donations reach legitimate organisations and those most in need.
How do charity scams work?
There are multiple forms of charity scams, including phishing emails and texts, fake websites, fake crowdfunding platforms, and sometimes even cold calls.
“Charity scams can be highly convincing, particularly in the aftermath of a disaster when well-intentioned Australians are keen to help. If you’re asked to donate through an unfamiliar website, social media link or unsolicited message, it’s worth taking the time to independently verify the appeal,” Latimer said.
The common tactics scammers use are:
- Impersonation: Pretending to be well-known charities or creating fake websites and links with similar names to trick people into donating.
- Disaster appeals: Preying on public sympathy, using real images and stories to ask for donations to fake relief efforts.
- Cold calls: Some scammers call directly, using emotional stories to pressure you into sharing personal information or payment details.
- Emails and social media: Be wary of messages that include links to donation pages, as they may can lead to fake websites designed to steal your information.
- Fake events: While less common, scammers have been known to promote fake events like fundraisers or auctions to pocket the proceeds instead of helping those in need.
How to stay safe from charity scams
There are a few simple but effective tactic to help avoid such scams.
Firstly, verify the charity before making any donations. You can check out the Australian government’s list of registered charities and not-for-profits in Australia here.
If you come across any donation appeals on social media or email, do not click on unsolicited links. Instead, go directly to the charity’s website via an online search or the Charity Register above.
Keep an eye out for the payment method, as scammers may encourage you to use untraceable payment methods like cryptocurrency or wire transfers.
Finally, be wary of unsolicited calls. If you are contacted by anyone purporting to be from a certain charity, say that you will call them back, and do so by using the official contact details from the Charity Register.
Remember, it’s a red flag if anyone purporting to be from a charity attempts to pressure you into donating, or escalates to aggression.
How to report a charity scam
If you suspect a scam, report the website or communications to National Anti-Scam Centre (NASC) – Scamwatch and Cyber.gov.au.
If you think you’ve been scammed, it’s important to contact your financial institution or card provider immediately. They can help stop further transactions and explore options to recover funds.
To help yourself and others stay scam-safe, keep in mind the simple, three-step “Stop. Check. Protect” method – take a moment before giving your money or personal information to anyone, make sure the person or organisation you’re dealing with is real, and act quickly if something feels wrong.