Americans for Consumer Education and Competition Urge Consumers to Look Out for Internet Charity Schemes as Online Donations Soar in the Wake of Katri19 October 2005
Americans for Consumer Education and
Competition (ACEC) today urged well intentioned consumers who donate money
over the internet to beware of schemes specifically created for online
charitable contributions.
"Online data theft blew in on the heels of Hurricanes Katrina and Rita to
ravage the personal finances of some unsuspecting goodwill donors," noted
Susan Molinari, national chairperson for ACEC. "Immediately following
Katrina's wrath, hundreds of hurricane relief websites were established to
collect donations. The convenience of donating online resulted in an
unprecedented amount of charitable giving. Unfortunately, a fraction of these
charitable sites were actually set up to steal financial and personal
information of donors using a visual masquerade faking the appearance of an
online charity."
Well-intentioned donations through these websites often ended up in the
bank accounts of the scam artists, rather than being directed toward relief
activities. This malicious tactic is known as "phishing," and it is becoming
more prevalent as consumers conduct financial business and charitable giving
online.
Just like any other transaction online, consumers should be cautious with
personal information when making an online charitable donation. Online
donations to a charity should never require passwords or a Social Security
number in order to process the transfer of funds. ACEC recommends ensuring the
legitimacy of the charitable organization before making a payment by checking
with the following organizations:
* Federal Trade Commission
* The Better Business Bureau's Wise Giving Alliance
* The Internal Revenue Service's list of organizations eligible to
receive tax-deductible charitable contributions
* Your state attorney general
Fraudulent schemes involving Hurricane Katrina and Rita may be reported to
the Internet Crime Complaint Center (IC3), this site is a partnership with FBI
and the National White Collar Crime Center. In addition, consumers can call
the Federal Trade Commission's Consumer Response Center, toll-free, at 1-877-
FTC-HELP (1-877-382-4357)
"Americans and people all over the world stepped up immediately to help
the victims of these devastating hurricanes. It is critical that this
worldwide generosity directly impact those who need it the most and not go
into the hands of internet bandits," said Molinari. "ACEC has developed tips
that will help online donors identify fraud characteristics and hopefully,
decrease the success of these internet schemes."
Now posted on ACEC's website, todaysmoneymatters.org, are the following
ten tips to protect consumers from online fraud:
1. Fight Spyware -- Use anti-spyware software and keep it up to date.
2. Guard Your Personal Information -- Charitable organizations will not
ask you for your Social Security number or account passwords.
3. Watch Out for Emotional Emails -- Don't be fooled by emails with
overly emotional and personal appeals that try to get you to react
immediately.
4. Be On a Secure Web Server -- Before you donate make sure you're on a
secure Web server by checking the beginning of the charity's URL in your
browser address bar. It should be "https" rather than "http." The "s"
stands for secure.
5. Check your Online Accounts -- Log in to your online accounts
regularly, and check bank, credit and debit card statements to ensure
that all transactions are legitimate.
6. Don't Click Through -- If you suspect the message might not be
authentic, don't use the links within the e-mail to get to a webpage.
7. Be Suspicious of Urgent Appeals -- E-mails with urgent requests for
personal financial information are not standard practice. Call the
organization that sent you the email to verify the request.
8. Be Cautious With How You Transmit Your Donation -- Communicate
information such as a credit card number only via a secure website or the
telephone.
9. Appearances May Be Deceiving -- Watch out for emails that are well-
designed and use established charities' logos.
10. Emails May Not Be From the Organization -- Look for emails that may
use a legitimate email address in the "from" section, it may actually be
concealing a spammer's address.
Americans for Consumer Education & Competition advocates for financial
literacy and consumer rights initiatives and enjoys the financial support of
VISA USA. ACEC communicates with more than 15 thousand consumers interested
in issues from financial literacy to budgeting for retirement to cardholder
benefits and rights. In addition, ACEC serves as a clearing-house for
information on financial issues, as the organization monitors, tracks and
provides analysis of financial legislation and litigation that has a direct
impact on consumers.
Source: PR Newswire
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