Frauds Steal Money and Identities of Donating Taxpayers

Last updated on April 23, 2022

Tax frauds know that after a big tragedy, people will donate money to help the victims. These scammers steal the money that is advertised to help victims of tragedies.

Scammers pose as charities and contact people through phone, email, in-person or social networking sites asking them to donate money for a cause. To earn the trust of taxpayers, some scammers use emails that lead to bogus websites imitating legitimate charities.

When donating, especially with cash, taxpayers need to check and confirm the authenticity of charitable institutions they donate to. In cases where taxpayers encounter a scam charity, they can report it to consumer protection and law enforcement agencies.

Apart from stealing donations, scammers also use the mask of charities to steal the identities of taxpayers. They try to get credit card details, tax information, bank account details, and other sensitive financial and personal information.

Due to increasing charity fraud, the IRS offers tips to taxpayers to help keep them safe from scammers. The IRS advises taxpayers to donate to qualified charities, never share their financial information, avoid donating with cash, and always ask for a receipt. Taxpayers must not only be careful of scammers during the tax season, but also after, and when donating to charities.