Tag Archives: charity scam

Vermont Flood Recovery: Beware of Scams and Price Gouging

Posted on by

Due to the extreme rainfall and flooding across the state, the White House issued a state of emergency for Vermont, which authorizes FEMA to support impacted Vermont counties in recovery efforts. Unfortunately, scammers take advantage of people’s heightened emotional state following disasters, and the Vermont Consumer Assistance Program wants you to be aware of targeted disaster relief scams to avoid while our communities recover from the flooding.

As we recover: Avoid Scams - Phony Charities, Government (FEMA) Relief, Dubious Contractors

Government imposter relief scams may claim to be FEMA or the State of Vermont. FEMA scams manifest as fraudulent inspectors that request fees for service, or administrative personnel that call to “verify” your information but are phishing for your personal information. Such relief help scams may even claim they can speed up your FEMA relief application for a fee.

Avoid this scam:  Connect with FEMA directly online: https://www.fema.gov/disaster/3595 and continue to follow updates from the Vermont’s congressional delegation, the Governor and Vermont Emergency Management.

Phony charities that solicit funds claiming to support recovery efforts. The Vermont way is to help our neighbors. We all want to help, whether it is through volunteering or donating money. Sadly, scammers use the same contact methods as legitimate charities (phone, online, mail).

Avoid this scam:  Please only give to valid charities that you have thoroughly researched and vetted. Use tools like the Better Business Bureau’s Wise Giving Alliance and Charity Navigator to research charities before you donate.

Dubious contractors may appear with promises to restore damages immediately in exchange for immediate payment. Such contractors urge you to act fast, may offer lower prices, and do not have credentials—though they might say they are “registered and insured,” these are unverified statements.

Avoid this scam: Vermonters must be extra critical about hiring home improvement contractors. Never pay in full upfront for a home improvement project. Make sure you have a contract. Check residential contractor registration status with the VT Office of Professional Regulation in the Secretary of State.

Please watch out for these scams and report businesses that set unconscionable price hikes on essential items, like bottled water. If you experience this practice, please report instances of price gouging to the Consumer Assistance Program by phone at 800-649-2424 or online at ago.vermont.gov/cap

More: The Vermont Attorney General’s Office flood resources page: https://ago.vermont.gov/flood-resources and the Federal Trade Commission on spotting and avoiding post-disaster scams: https://consumer.ftc.gov/consumer-alerts/2023/07/how-spot-and-avoid-post-disaster-scams-northeast

Charity Fraud Awareness Week

Posted on by

October 21-25, 2019

Charity fraud is, unfortunately, all too common. But don’t be discouraged. You can still make your charitable giving count by following the tips below to identify the bad actors from the good:

Tip #1: Do your Research

Visit websites like Charity Navigator or the Better Business Bureau Charity Information for Donors to learn more about a particular charity. If you receive a call asking for donations, ask questions like:

“Who are you and what is the name of this charity?”
“Where is the charity located?”
“How would my donation be used?”
“Are you a paid fundraiser?”

Tip #2: Learn about Paid Fundraisers

Some charities hire paid fundraising companies to help them solicit donations. In Vermont, any charity using a paid fundraiser must register with the Vermont Attorney General’s Office, and report how much of the donations received go to the fundraiser. Visit the Attorney General’s website to learn more and access donation information, or call the Consumer Assistance Program: 800-649-2424

Tip #3: Spot the Scam

Scammers use phone calls, mailings, door-to-door solicitations, and emails to trick people into “donating” to their “cause.”  

  • Phone calls: Scammers will pressure you to give money right away. They might ask you to send cash or wire money, and they will not give many details about what the donation is for.
  • Mailings: You might receive a letter in the mail thanking you for a pledge you never made. This is a signal that the mailer is a scam. If you receive a mailer that you’re unsure about, do your homework by searching online, or call the Consumer Assistance Program.
  • Door-to-door: When someone knocks on your door to ask for a donation, the pressure is on. Remember that you are under no obligation to give. Ask for more information and do your research. If you cannot get legitimate information about the charity, odds are it is a scam.
  • Emails: Think before you click! Phishing emails look similar to messages from legitimate sources and use email addresses that seem familiar. Be cautious with suspicious emails and call a charity directly if you have questions. Don’t use a phone number on the suspicious email; look it up separately.

Some common charity scams in Vermont include:

  • Pastor imposter scams: a scammer posing as a local religious leader asks you to donate to a cause using gift cards via email.
  • Fire or police organization imposter scams: a scammer calls asking for donations to a local or national first responder organization. If you get a suspicious solicitation, hang up the phone and call your local firefighter or police station to get more information.
  • Disaster scams: Scammers ask you to donate to a charity that provides relief for people who have experience natural disasters, except the charity doesn’t exist or they are impersonating a real charity. Always do your research before giving money or personal information.

Tip #4: Call the Consumer Assistance Program!

If you feel unsure about a charity solicitation or believe you have donated to a scam, call the Consumer Assistance Program! The Consumer Assistance Program can help identify warning signs, provide paid fundraiser information, and help you recover from scams.

Consumer Assistance Program: ago.vermont.gov/cap or 800-649-2424

Tips for the Charitable Giving Season

Posted on by

Don't let scammers take the cheer out of your giving seasonAs a little girl, I fondly remember watching my dad open scores of charitable solicitations, some containing gifts of greeting cards or address labels, others with a simple request to help their cause.  This giving season, I am now the one who opens the mail with thoughtful poise and consideration, “Which causes should I support this year?”  In this time of giving, many of you may be asking the same question.  To help you decide, I’ve outlined the steps that I take before giving:

1.  When I get a solicitation for a new cause that piques my interest, I research the cause before donating.  Helpful websites, like Charity Navigator and the Better Business Bureau’s Giving Wise Alliance (BBB), have information on charities.  Charity Navigator pulls its information from charities’ IRS tax documents and the BBB has an accreditation program for charities.

2.  I check and double-check solicitation mailing addresses and phone numbers.  I do this even with charities that I regularly contribute to.  I always ask fundraising callers to mail me the solicitation so that I can check the contact information.  If the mailing address and phone number does not pass this verification test, I contact the charity directly.

3.  I look for paid fundraiser information.  A paid fundraiser is a third-party solicitation company that, aside from the fundraising campaign, is not affiliated with the charity.  This means that a portion of the funds raised are split between the charity and the soliciting business.  Vermonters can ask if a third-party fundraiser is involved.  When they are, however, they should disclose this information upfront.  The Attorney General’s Office keeps a record of paid fundraisers registered in our state.  All Vermonters can look to see how funds are allocated between the paid fundraiser under the charities section on our website.  This information can also be requested by contacting the Consumer Assistance Program at 800-649-2424.

4.  I am mindful about the presence of disaster scams.  With the unknown that comes with natural disasters, giving following such events can seem imminent as evidenced by the aftermath of the California wildfires.  Unfortunately, less scrupulous efforts may attempt to take advantage of those who want to help.  Following the above tips will help to identify the scams.  For more on this topic, check out our blog.

These steps help me verify that my money is going to the cause that I intend, and not to a scammer.  It’s easy for a motivated scammer to create a realistic looking website to try to legitimize a fake charity.  If you receive a solicitation that seems suspicious, but just aren’t sure, give the Consumer Assistance Program a call.  We’ll help walk you through the steps that we would take before donating.

Contributing Writer:  Crystal Baldwin is in her tenth year of service with the Consumer Assistance Program.