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Disaster Relief Donations: Spotting Scams and Safeguarding Your Contributions

As we dive deeper into both the hurricane and holiday seasons, it’s important to remember that malicious cyber activity is never far behind. Hurricane Helene has just unleashed her fury on a number of Southeastern states, leaving a wake of devastation behind her. With the death toll at over 130 already and countless homes destroyed, families and loved ones have already begun to set up crowd sourcing pages to help recoup what they can to survive and begin again.

It’s natural that when a disaster occurs, our first instinct is to help. Following a natural catastrophe, such as Hurricane Helene, food, fresh water, clothing, and medical supplies are often the first necessities. However, monetary donations are often the best way to help after a disaster, as they allow relief organizations to buy the exact supplies they need in bulk.

Once you decide to donate to a disaster relief fund, always ask yourself this question: is this a charity or is this a charade?

As you look for a charity or fund to donate to, there are several tools at your disposal. A quick Google search featuring the name of a selected charity along with terms like fraud, scam, or complaint, may give you peace of mind that you are donating to a legitimate organization. If you are looking for more assurance that your donations are going to their intended cause, there are still more tools available.

The Federal Trade Commission has outlined a few ways to validate the legitimacy of a charity in this article. There are also notable websites available to help you select a charity, such as  www.give.org or www.charitynavigator.org.

Note: legitimate charity websites typically end in .org rather than .com.

There are a few things to keep in mind before donating to a cause during a period of disaster relief.

  1. Unsolicited emails from unreputable senders should not be answered, and you should always avoid clicking on links they may contain.
  2. Do not send money over the phone unless you initiated the call and are confident that the charity is legitimate by referencing the above sources.
  3. Be cautious of crowdfunding sites, such as GoFundMe, since there is typically minimal vetting during the aftermath of disaster. The Better Business Bureau cites that photos and emotional appeals are not always accurate, and often levied to pull at unsuspecting heartstrings for their own gain.

Much of this guidance also applies to donations toward holiday-specific charities. Consumers have found themselves at the mercy of scammers when trying to spread holiday generosity through supporting charities. In particular, GoFundMe was specifically named in an article released by the United States Attorney’s Office last December.

It’s important to note that legitimate charities do not use high-pressure tactics and will not rush you to donate immediately. It’s imperative to valid organizations that you take your time when deciding on a charity to assist. Be cautious of look-alike names when it comes to well-known organizations, as scammers will mimic the appearance of a legitimate charity to deceive potential victims. Furthermore, you should always keep track of your donations, legitimate or otherwise, to ensure that your transaction is not recurring or that additional charges do not accrue without authorization.

Any suspicious activity should be reported to your financial institution if you believe you’ve fallen victim to a charity scheme. Time is of the essence when it comes to collecting stolen funds, and the best practice is to begin investigative process’ the moment suspicion begins. You can report fraudulent activity directly with any Community First Bank branch, or by calling the Deposit Operations team directly at (509) 783-0955.

Kylee Tretteen, Deposit Operations Specialist

LEGAL INFORMATION & DISCLOSURES

This memorandum expresses the views of the author as of the date indicated and such views are subject to change without notice. Community First Bank, HFG Trust, and HFG Advisors have no duty or obligation to update the information contained herein. Further, Community First Bank, HFG Trust, and HFG Advisors make no representation, and it should not be assumed that past investment performance is an indication of future results. Moreover, wherever there is potential profit there is possibility of loss. This memorandum is being made available for educational purposes only and should not be used for any other purpose. The information contained herein does not constitute and should not be construed as an offering of advisory services, banking services, or an offer to sell or solicit and securities or related financial instruments in any jurisdiction. Certain information contained herein concerning economic trends and performance is based on or derived from information provided by independent third-party sources. Community First Bank, HFG Trust, and HFG Advisors believes that the sources from which such information has been obtained are reliable; however, it cannot guarantee the accuracy of such information and has not independently verified the accuracy or completeness of such information or the assumptions on which such information is based. This memorandum, included the information contained herein, may not be copied, reproduced, republished, or posted in any form without the prior written consent of Community First Bank and/or HFG Trust and/or HFG Advisors. HFG Advisors, Inc, is a wholly owned subsidiary of HFG Trust, LLC. HFG Trust, LLC is a Washington state-registered Trust company and wholly owned subsidiary of Community First Bank.