Hurricane Recovery and Other Charity Scams
Demand information before giving to disaster relief, police or fire funds.
Sept. 8, 2008 — -- Hurricane Gustav wasn't as disastrous as feared, but it still did plenty of damage -- and, just a week later, it's hello Hanna, Ike and Josephine.
In times like these, there's likely to be a secondary storm of activity on your phone and in your e-mail inbox -- from con artists asking for money for fake police and fire funds. We all feel grateful when police officers and firefighters put their lives on the line to help us. That's exactly why con artists pose as police officers and firefighters, and ask for money.
Recently I got some insider tips from a guy who had just quit working at one of these dishonest boiler rooms. He told me all the scammers use fake names when they call people on the phone. He said he and his colleagues regularly ignored laws that make it illegal to pose as a police officer or firefighter. He said the head of his operation routinely paid off the receptionist at the local fire department so she would lie and say the group was for real. And he explained that whenever he got a donation by claiming to be collecting money for the police, he would then give the number to a co-worker who would call back and try to get another donation by posing as a firefighter.
Just to make matters more confusing, real police and fire organizations typically use paid professional fundraisers to raise money for them. Even though these professionals are representing the real deal, it can still be a raw deal for you. Whenever there's a middleman that means there's less money for the actual cause. Here's another problem: Sometimes legitimate public safety organizations collect money without guaranteeing that the funds will be used locally. Don't assume that your donation will help the firefighters down the street unless you ask.
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