Warning signs to help identify and avoid charity fraud

Worried about falling victim to a charity scam? Recent data shows fraudsters diverted more than £2.7m from charities between 2022 and 2023, with 501 charity fraud crime reports made over the same period.¹

This article includes tips, suggestions and general information. We recommend that you always do your own research and consider getting independent tax, financial and legal advice before making any important decision.

Staying informed and adopting a cautious approach are essential to help safeguard against charity fraud. Learn more in this guide.

What are charity scams and how do they work?

Charity scams generally prey on people’s good nature, often to redirect potential donations away from legitimate, impactful causes.

Here are some common scams that can target charitable donors:

• False collections: Scammers may pose as legitimate charity collectors, falsely claiming to represent well-known organisations. They approach individuals for donations but instead pocket the money for themselves.

• Lookalike websites: Other criminals may create convincing albeit false charity websites that mimic legitimate organisations. Unsuspecting donors may contribute funds to these fake sites via payment gateways.

• Phishing emails: Emails may impersonate reputable charities and ask recipients to click on links and provide personal or financial information.

• Fraudulent calls: Scammers use cold-calling tactics posing as charity representatives and pressure individuals to make immediate donations.

Potential warning signs of charity scams

Looking out for warning signs may help people stay protected against charity fraud. Examples may include:

• Pushiness: Be sceptical of a collector who insists on an immediate donation, discouraging someone from taking time to research or verify the charity.

• Patchy information: Consider if the charity representative can provide detailed information about the organisation's mission, leadership, projects, and how funds are disbursed.

• House or phone calls: Watch out for an unexpected phone call, email, or doorstep visit from someone claiming to represent a charity you have not interacted with before.

• Fake sites: A so-called “charity website” with poor grammar, typos, bad design, or a suspicious URL? That could signal a potential scam.

• Odd payment requests: Criminals who insist on donations in cash, by wire transfer, or through gift cards may be trying to avoid detection.

• Soundalikes: When cynical scammers create names similar to well-known charities, they are hoping individuals will not spot the difference.

Get more tips to protect against online fraud.

How to verify a charity

The UK’s Fundraising Regulator, the Charity Commission for England and Wales, and Action Fraud recommend several verification steps² including:

• Check the charity’s name and registration number on the Charity Register.

• Confirm their registration details before giving any financial information.

• Be careful when responding to emails or clicking on links within them.

• Contact the charity to understand how they are spending their funds.

• Check the Fundraising Regulator’s Directory of organisations.

Report a suspect charity

One can report suspected charity fraud to help prevent others from falling victim. Reporting mechanisms depend on one’s location.

• In England and Wales, people can raise concerns about charities by contacting the Charity Commission.

• The Charity Commission for Northern Ireland handles complaints from people in that part of the UK.

• In Scotland, people can do so via the Scottish Charity Register (OSCR).

Report PayPal account fraud.

Practices for donating safely to avoid charity scams

There are ways people can safely make donations to genuine charities while potentially limiting their risks of falling victim to fraudsters. Start by:

• Taking the time to conduct due diligence before donating to any charity.

• Never giving out personal financial information over the phone or via email.

• Seeking regulated, well-known, and safe options for making donations.

For example, it is possible to donate through online platforms and established payment methods such as PayPal that offer multi-factor authentication, strong payment security, and transaction traceability. Learn more about how to donate online to charity and explore the benefits of donating to charity.