Wednesday, May 8, 2013

Beward of Charity Scams after Boston and Central Texas Tragedies

The IRS is warning that after major disasters and tragedies, scam artists impersonate charities to steal money or get private information from well-intentioned taxpayers. Fraudulent schemes may involve solicitations by phone, social media, e-mail or in person.

Scam artists use a variety of tactics including:

  • Operating bogus charities that contact people by telephone to solicit money or financial information.
  • Using e-mails to steer people to bogus websites to fraudulently solicit funds for the benefit of tragedy victims. Fake websites often imitate legitimate charity sites or use names similar to genuine charities. They may claim affiliation with bona fide charities to persuade individuals to send money or provide personal financial information, which can then be used to steal the identities or money of their victims.
The IRS offers the following five tips to help taxpayers who want to donate to victims of the recent tragedies at the Boston Marathon and a Central Texas fertilizer plant:

  1. Donate to qualified charities.  Use the "Exempt Organizations Select Check" tool at IRS.gov to find qualified charities. Only donations to qualified charitable organizations are tax-deductible. You can also find legitimate charities on the Federal Emergency Management Agency (FEMA) Web site at fema.gov.
  2. Be wary of charities with similar names. Some phony charities use names that sound like familiar or nationally known organizations. They may use names, logos or websites that are similar to or look like those of legitimate organizations.
  3. Don't give out personal financial information. Do not give your Social Security number, credit card and bank account numbers and passwords to anyone who solicits a contribution. Scam artists use this information to steal your identity and money.
  4. Don't give or send cash. For security and tax record purposes, contribute by check or credit card or another way that provides documentation of the donation.
  5. Report suspected fraud. Taxpayers suspecting tax or charity-related fraud should visit IRS.gov and perform a search using the keywords "Report Phishing."

More information about tax scams and schemes is available at IRS.gov using the keywords "scams and schemes."

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