Division of Financial Institutions Warns Ohioans to Beware of Fake Charity Scams this Holiday Season

COLUMBUS, Ohio - During this season of giving, the Ohio Department of Commerce's Division of Financial Institutions (DFI) urges Ohioans to be cautious of holiday scams, particularly those involving fraudulent charitable organizations.

Fraudsters often use this time of year to exploit the trust and generosity of well-intentioned individuals. Last year alone, Americans donated $374 billion to charities; however, according to a survey conducted by AARP regarding holiday donations, 6 in 10 Americans surveyed said they don't always research an organization before contributing. In 2023, the Federal Trade Commission (FTC) reported that consumers lost more than $10 billion to fraud in general, which marked an all-time high.

"It is unfortunate that during a season meant for good will and generosity, there are those who seek to take advantage of unsuspecting individuals," said DFI Superintendent Kevin Allard. "We want to remind everyone to make sure they conduct due diligence before making a financial gift to ensure their contributions support legitimate causes and they don't line the pockets of criminals."

Holiday scams come in various forms, including unsolicited calls, texts, fake advertisements, and emails. Fake charity scams are prevalent, as scammers create deceptive phone calls and websites to steal money and personal information from unsuspecting individuals. Scammers often attempt to closely imitate legitimate charities' phone numbers and contact information, adding another layer of deception.

Ohioans should be particularly wary of unsolicited calls and text messages. The FTC has previously warned of fake shipping notifications via email and text messages. When a link contained in those messages is clicked, malware can be installed on your device, allowing scammers to potentially steal your data or gain unauthorized access to systems or information. Remember, the U.S. Postal Service does not send unsolicited messages or emails containing links.

Tips to Avoid Fake Charity Scams

1. Verify First: Ask for the charity's full name, website, and mailing address, then use the Tax-Exempt Organization Search (TEOS) tool on IRS.gov to verify the legitimacy of a charity. You also can check eligibility for tax-deductible contributions and access information about an organization's tax-exempt status and filings. You may also consider using resources like the BBB's Wise Giving Alliance or Charity Watch.
2. Avoid Pressure: Legitimate charities will accept donations at any time and at any amount. Don't rush into giving.
3. Protect Personal Information: Treat personal information like cash; don't give it freely.
4. Be Cautious of Payment Methods: Avoid making donations via cash, gift cards, via wiring money, services such as Venmo, or cryptocurrency. By making donations via credit cards, Ohioans can stay better protected from financial concerns.
5. Verify Text Donations: Before making a donation via text, be sure to confirm the charity's number on its website to ensure it is a valid number.
6. Crowdfunding Caution: Exercise caution when donating to individuals on crowdfunding sites. If you do, make sure it's someone you personally know and trust.
7. Act Fast if You Become a Victim: If you encounter a suspicious charity, you are encouraged to consult the FBI's resources on Charity and Disaster Fraud.

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About the Ohio Division of Financial Institutions

The Division of Financial Institutions is part of the Ohio Department of Commerce. The department is Ohio's chief regulatory agency, focused on promoting prosperity and protecting what matters most to Ohioans. We ensure businesses follow the laws that help them create jobs and keep Ohioans safe. To learn more about what we do, visit our website at www.com.ohio.gov.