The Internal Revenue Service (IRS) has warned American taxpayers to be on the lookout for criminals soliciting donations and falsely posing as legitimate charities in the wake of a string of natural disasters and conflicts happening across the globe.
In an Oct. 23 news release, the IRS noted that criminals commonly set up fake charities to take advantage of the public’s generosity during times of international crises or disasters.
Officials said such criminal schemes typically seek money and personal information from the would-be donor—personal details that can be used to further exploit the victim through identity theft.
Bogus charities may also use various ways to lure victims in, such as through emails and fake websites, the IRS said. In some cases, the criminals may alter their caller ID to make it look like a real charity is calling to solicit donations.
The elderly and those with limited English proficiency are most commonly targeted by criminals attempting such schemes, the IRS said.
“When fake charities scam unsuspecting donors, the proceeds don’t go to those who need the help and those contributing to these fake charities can’t deduct their donations on their tax return,” the agency noted.
Before making a donation to charity, the agency urged taxpayers to remain cautious and to use the Tax-Exempt Organization Search (TEOS) tool on the agency’s website to ensure the charity is legitimate.
The tool will also help taxpayers wishing to donate to check the eligibility of a charity to receive tax-deductible charitable contributions and search for information about an organization’s tax-exempt status and filings, the IRS said.
The agency also urged taxpayers not to give in to pressure, noting that bogus charities often pressure people into making an immediate payment, which is something it said a legitimate charity would not do.
Criminals ‘Prey on Those Most Vulnerable’
It also warned American taxpayers not to hand over unnecessary personal information and to never work with charities that ask for donations by gift cards or via wiring money as this is a scam, according to the IRS.“It’s safest to pay by credit card or check—and only after verifying the charity is real,” the agency said.
“We all want to help innocent victims and their families,” said IRS Commissioner Danny Werfel. “Knowing we’re trying to aid those who are suffering, criminals crawl out of the woodwork to prey on those most vulnerable—people who simply want to help. Especially during these challenging times, don’t feel pressured to immediately give to a charity you’ve never heard of. Check out the charity first and confirm it is authentic.”
The IRS warning comes amid a surge in fake charity scams due to the ongoing conflict between Israel and Hamas, according to identity theft protection company IdentityIQ.
“With the Israel–Hamas war, at IdentityIQ we are starting to see members call in about phone call scams, email scams, and fake websites that are popping up asking for charitable donations,” Mike Scheumack, chief innovation officer at IdentityIQ, told FOX Business.
Cryptocurrency Charity Scams on the Rise
Like the IRS, Mr. Scheumack also recommended would-be donors verify the identity of the charities before handing over money.In addition, Mr. Scheumack recommended individuals donating to charity use a credit card to ensure they have an added layer of protection.
“And if a caller or website claims that 100 percent of its donations go to the victims, it’s probably fake. All organizations have overhead costs, so giving 100 percent to victims is most likely an exaggerated claim,” Mr. Scheumack said.
On Monday, BleepingComputer also reported a growing number of cryptocurrency scammers attempting to cash in on the Israel-Hamas.
According to the report, researchers identified several posts on X, Telegram, and Instagram attempting to solicit donations for both Israeli and Palestinian civilians caught up in the conflict, however, the posts that have listed “dubious” cryptocurrency wallet addresses and are not endorsed by an official charity.
In addition, researchers at the Cybersecurity firm Kaspersky told the publication they have seen more than 500 scam “fundraising” emails and sham websites created by entities claiming to be charities, according to the report.
The allegedly fake emails and websites urge the victims to donate in Bitcoin, Ethereum, Tether, and Litecoin, according to Kaspersky, and use “multiple text variations” to evade spam filters.
Fraud cost consumers $8.8 billion in 2022, marking a 30 percent increase from the previous year, according to the Federal Trade Commission.
The most commonly reported scam was imposter scams, the agency says.
