For many Australians, donating to charity is as much a part of Christmas as other traditions. However, the holiday season is unfortunately also a prime time for scammers looking to exploit people’s kindness.
“While Christmas inspires many to give back, it’s crucial to be aware of charity scams and the tactics criminals use,” COBA Acting Chief of Financial Crimes and Cyber Resilience Martin Latimer explained.
To help you stay safe, COBA’s financial crimes team share their expert tips on how to spot and avoid charity scams.
Be on the alert for charity impersonation
Charity scams can take many forms, and a common tactic by scammers is posing as legitimate charitable organisations. They will often impersonate well-known and trusted charities, or create fake charities with similar names, to mislead people into believing they are donating to a reputable cause.
“To protect yourself, it’s essential to be proactive and do your own research,” Martin advises.
Before donating, take the time to verify the charity’s legitimacy through trusted resources like the Australian Charities and Not-for-profits Commission (ACNC).
Beware phishing attempts
Phishing is method scammers use to obtain your personal information, such as login credentials or credit card details.
“A common phishing tactic is a scammer sending a text message or email, urging you to click on a link to donate. These links will lead to fake websites or phishing pages designed to steal your personal and payment information, or download malware onto your device,” Martin says.
“Avoid clicking on links and never open attachments from unknown senders,” he adds.
Be suspicious of unsolicited contact
Unsolicited requests for donations can be a red flag for scam activity.
“Scammers cold-call individuals and use emotional manipulation to obtain personal and payment details over the phone. They’ve even been known to send mail in the post to urge customers to give,” he says.
Scammers often try to pressure people into making immediate donations, often by creating a sense of urgency or playing on their emotions
“Avoid sharing any information with unknown or unverified individuals or organisations, especially in the case of unsolicited contact. Be cautious of emotional or urgent appeals for help, and only use trusted and expected payment methods,” he adds.
Report the scam
If you encounter a potential scam, report it to ScamWatch.gov.au to help protect others. If you’ve been scammed, immediately report the transaction(s) to your bank or financial institution.
Customer-owned banks are dedicated to safeguarding their customers from scams and fraud. In November 2023, 55 mutual banks and credit unions demonstrated this commitment by joining forces to launch the Scam-Safe Accord with the Australian Banking Association. This industry-wide initiative represents a united front against scammers and reinforces the banking sector’s determination to strengthen consumer protection. Find out more about the Scam-Safe Accord here.