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Watch for these possible charitable giving scams

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How Clients Can Spot Charitable Giving Scams

Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

Financial scams and con artists have probably been around at least as long as people have been using money. In the past when I read stories about scams, I often wondered how people could be so gullible. I assumed that the victims of fraud were the vulnerable elderly or less educated, had suffered a recent loss of a loved one, or were isolated.

This is not necessarily the case.

While some data suggests that one in five of those over age 65 have been targeted by email scammers, being scammed can happen to anyone. Nobody is immune to fraud, and sometimes people simply fall for scams due to the psychological techniques employed by fraudsters. Often, especially this time of year, their strategies are meant to take advantage of our desire to give.

Shipping and mailing scams

If you’re sending gifts, be suspicious if you get an email or text message that appears to be from UPS, FedEx, or the US post office. One scam involves sending messages that you need to pay a fee for a missed delivery, which is an attempt to lure you to a fake website that asks for your credit or debit card information.

Hang onto receipts that include tracking numbers in case you need to find a misdelivered package. It’s also a good idea to let recipients know the tracking number and the expected date of delivery to help them guard against packages being stolen by “porch pirates.”

Mail checks or gift cards at the post office or a drop box rather than putting them in your home mailbox. A friend of mine had thieves steal a check out of her mailbox, alter the payee and amount, and try to cash it at her bank. Fortunately, an alert teller refused the transaction and called the police with information about the thieves’ car, and they were caught. Stolen checks can also be used for identity theft or sold on the dark web.

“Family member in need” scams

A standard phone scam targeting grandparents is the call from someone claiming to be “your oldest grandson” who is in trouble and needs money urgently. A related method sends random text messages pretending to be a family member who has lost their phone. If a parent responds to a text saying, “This is my new number,” the scammer then asks for money because of some problem related to losing their phone.

In cases like this, you want to be like one of my clients who got the “Grandma, I’m in trouble” phone call. Her oldest grandson has a distinctive voice, so she knew immediately that the call was phony. Instead of responding with the grandson’s name, which is what the scammer hopes for, she just said, “Oh?” and waited. “I won,” she later said proudly, “The scammer hung up on me!”

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