Avoid scams when helping Peru earthquake victims

Monday, August 20, 2007

Disasters like the earthquake in Peru evoke a response to help. But scam artists know that people will generously open their hearts and wallets to help disaster victims, and they move as quickly as legitimate charities do to begin collecting money. To avoid scams, the Federal Trade Commission warns you to donate money only to established international relief organizations.

An FTC consumer alert, Helping Earthquake Victims: Your Guide to Giving Wisely, offers advice to make sure your donation doesn't get put in a con artist's pocket. Among the tips provided by the FTC:

• Donate only to recognized charities you are familiar with. Some less established charities may be well-meaning, but lack the infrastructure to provide assistance. Be wary of charities with names that sound like familiar, or internationally known, organizations. Some phony charities use names that sound or look very much like those of respected, legitimate organizations.
• Give directly to the charity, not to solicitors, because charity marketing firms take a portion of the proceeds to cover their costs, which leaves less for victim assistance.
• Do not give out personal or financial information—especially your Social Security, credit card or bank account numbers—to anyone who contacts you. Scam artists could use this information for identity theft and other fraudulent activities.
• Check out charities before you donate. Contact the Better Business Bureaus’s Wise Giving Alliance at www.give.org.
• Do not give or send cash. For security, as well as to document income tax deductible contributions, make all donations by check or credit card. Write the official name of the charity on your check. You can contribute safely online through the www.redcross.org.
• Ask for identification if you are approached in person. Many states require paid fundraisers to identify themselves and provide the charity's name.

For more information or to file a complaint, visit www.ftc.gov.