And the evil in the world just keeps chugging along. Case in point:
In the wake of Hurricanes Milton and Helene, the IRS has warned in a Oct 15th statement that fraudsters have been exploiting the generosity of individuals looking to help disaster victims by soliciting donations through fake charitable organizations. These scams are designed not only to steal donations but also to harvest personal and financial data from unsuspecting Americans, which opens the door to identity theft.
“Many people want to help survivors and their families by donating to charities,” IRS Commissioner Danny Werfel said in a statement. “Too often, criminals take advantage of would-be donors’ kindness by stealing money and personal information from well-meaning taxpayers.”
Potential donors should be reminded to be wary of high-pressure solicitations and to check that the charity is legitimate, for instance by using the Tax Exempt Organization Search (TEOS) tool. The tool lets individuals verify a charity’s tax-exempt status and ensure it is qualified to receive tax-deductible donations.
“You should never feel pressured by solicitors to immediately give to a charity,” Werfel said. “It’s important to do the research to verify if they’re authentic first.”
There are red flags that it is probably a scam is if they want sensitive personal information, such as Social Security numbers or credit card details, or request payment through unconventional methods like gift cards.
“Never work with charities that ask for donations by giving numbers from a gift card or by wiring money. That’s a scam,” the agency cautioned. “It’s safest to pay by credit card or check—and only after verifying the charity is real”
This matches a warning from the FBI, which also urged people to be wary of scammers exploiting tragedies to solicit donations for fake charities. The FBI also cautions that, after natural disasters, fraudsters may pose as contractors or government officials, committing insurance fraud and further victimizing those with damaged homes and businesses.
This isn't the first time the IRS has taken aim at fake charities exploiting taxpayer generosity. In April, they included fake charities in their annual Dirty Dozen list of tax scams.
The Dirty Dozen campaign, which started in 2002, spotlights the most prevalent tax scams that put taxpayers, businesses, and tax professionals at risk. While these schemes often intensify around the tax filing season, they can occur any time of the year. In 2024, the Dirty Dozen included a range of scams, from fake charities to phishing attacks. You might find it interesting reading.