Charity fraud occurs when the offender pretends to be a legitimate charity to get their hands on donation money. Instead of transferring these funds to the advertised cause, they are used for the culprit's own personal gain. Scammers may either impersonate registered charities or seek donations through a false organisation. They may also act as individuals who require financial assistance for healthcare or other critical reasons.

Fake charities work in a variety of ways. Scammers may go door-to-door collecting money, approach people on the street or even set up fake websites that resemble those of real charities. Others will email or cold call you. 

Although this type of fraud happens all year round, it is particularly prevalent following high-profile disasters and emergencies so it pays to be alert during these times.

To confirm that a charity is legit, check whether it is registered on the Australian Charities and Not-for-Profits Commission website. 

If a charity collector approaches you in person, ask to see their identification and request details about the charity itself, including its registered name, address and exactly how they intend to use the proceeds. If they are defensive or unable to answer your questions clearly, walk away.

Other warning signs to watch out for include:

• You have never heard of the charity;
• You are familiar with the charity but its website, letters or emails look suspicious or different than usual;
• The charity requests a gift card, wire transfer or cash donation;
• The person collecting donations is unable to present any form of identification;
• The person collecting donations asks for a cheque to be made out to their personal name instead of the charities;
• You feel pressured to pay a donation; or
• After donating, you receive no receipt or it includes no details of the charity.

If you suspect that you have come across or fallen victim to a fake charity scam, please follow the below steps as soon as possible:

• Report the scam to your financial institution, local police, social media providers and Scam Watch so that each organisation is notified and can assist you in taking the next steps to recover from the crime.
• Contact CFTC investigators so that we can help you to hunt down the offender. This highly sensitive and high-stakes procedure requires the skills and resources of investigative specialists.

Charity scam investigations tend to take anywhere from one to three months. This time frame rests in the complexity of your case and whether or not you decide to take legal action. 

If the fraudster is identified and tracked down, our investigators can assist law enforcement officials in filing search warrants and/or criminal charges against them – an often complicated and lengthy task that will add time to the overall process.

The cost to investigate a fake charity depends on the sophistication of the scam, the damage incurred, and the jurisdiction in which the crime occurred.

Before commencing the investigation, our investigators will share a tailored proposal for your case, including a suggested budget to maximise the chances of a successful outcome.

There is no one-size-fits-all answer to this question, as the probability of a successful outcome varies on a case-by-case basis. While success is never guaranteed, the more actionable evidence we uncover, the greater the likelihood that you will be equipped to prosecute the culprit. 

At CFTC, we will perform a preliminary assessment of your case to advise on the realistic likelihood of tracking down the offender. Armed with our expert insight, you may choose whether or not to proceed with the fake charity investigation.