IRS cautions US taxpayers about fake charities after tragic crises.
The Internal Revenue Service (IRS) has issued a warning to American taxpayers, urging them to be vigilant against criminals who are posing as legitimate charities and soliciting donations in the aftermath of natural disasters and conflicts worldwide.
In a news release on October 23, the IRS highlighted the common practice of scammers setting up fake charities to exploit the public’s generosity during times of crisis. These criminals typically aim to obtain money and personal information from potential donors, which can then be used for identity theft.
Bogus charities employ various tactics to deceive victims, including sending emails and creating fake websites. In some cases, they may even manipulate their caller ID to make it appear as though a genuine charity is contacting individuals for donations.
The elderly and those with limited English proficiency are often targeted by these schemes, according to the IRS.
The agency emphasized that when individuals fall victim to fake charities, their donations do not reach those in need, and they are unable to claim deductions on their tax returns.
Prior to making a donation, the IRS advises taxpayers to exercise caution and utilize the Tax-Exempt Organization Search (TEOS) tool on their website to verify the legitimacy of a charity. This tool also allows individuals to check if a charity is eligible to receive tax-deductible contributions and provides information on an organization’s tax-exempt status and filings.
The IRS also warns against succumbing to pressure, as legitimate charities do not typically demand immediate payments.
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The IRS warning also cautions American taxpayers against providing unnecessary personal information and advises against donating to charities that request gift cards or wire transfers, as these are common scam tactics.
The agency recommends using credit cards or checks for payment, after confirming the authenticity of the charity.
IRS Commissioner Danny Werfel stated, “We all want to help innocent victims and their families. However, criminals take advantage of people’s desire to assist, particularly during challenging times. It is crucial to research and verify the legitimacy of a charity before making a donation.”
Identity theft protection company IdentityIQ has reported a surge in fake charity scams related to the Israel-Hamas conflict. Scammers are using phone calls, emails, and fake websites to solicit donations. Mike Scheumack, Chief Innovation Officer at IdentityIQ, advises potential donors to verify the identity of charities and use credit cards for added protection.
Furthermore, BleepingComputer has uncovered a rise in cryptocurrency scammers attempting to exploit the Israel-Hamas conflict. These scammers are soliciting donations through posts on various platforms, but the listed wallet addresses are dubious and not endorsed by official charities.
According to cybersecurity firm Kaspersky, over 500 scam “fundraising” emails and sham websites have been identified, urging victims to donate in cryptocurrencies such as Bitcoin, Ethereum, Tether, and Litecoin. These scammers employ multiple text variations to evade spam filters.
Fraud cost consumers $8.8 billion in 2022, with imposter scams being the most commonly reported type, according to the Federal Trade Commission.
What specific groups of people are particularly vulnerable to charity scams, according to the IRS?
.taxnews.com/irs-warns-of-increasing-tax-scams-during-pandemic”>IRS Warns of Increasing Tax Scams During Pandemic - Published on 9/15/2023
The warning issued by the Internal Revenue Service (IRS) serves as an important reminder for American taxpayers to exercise caution when donating to charities, particularly in the aftermath of natural disasters and conflicts worldwide. Scammers have long taken advantage of people’s generosity during times of crisis, setting up fake charities to exploit their goodwill. This not only deprives genuine charities of much-needed funds but also puts individuals at risk of identity theft. One of the main tactics employed by these criminals is creating fake websites and sending emails to solicit donations. In some cases, they go to great lengths to make it appear as though they are from a legitimate charity, even manipulating caller ID. This makes it even more difficult for potential donors to identify fraudulent organizations. The IRS warns that the elderly and those with limited English proficiency are particularly vulnerable to these schemes. When individuals fall victim to these scams, their donations do not reach the intended recipients, and they are unable to claim deductions on their tax returns. This not only undermines the public’s trust in charitable organizations but also hinders the efforts to provide relief to those in need. To protect themselves and ensure their donations are going to legitimate charities, the IRS advises taxpayers to use the Tax-Exempt Organization Search (TEOS) tool on their website. This tool allows individuals to verify the legitimacy of a charity, check if it is eligible to receive tax-deductible contributions, and provides information on an organization’s tax-exempt status and filings. By utilizing this resource, donors can safeguard their contributions and support genuine charitable causes. It is also important for individuals to be wary of any pressure tactics employed by scammers. Legitimate charities do not typically demand immediate payments and will give individuals time to research and make an informed decision. Being aware of these warning signs can help individuals avoid falling victim to fake charities and protect their financial and personal information. Overall, the IRS’s warning serves as a timely reminder for American taxpayers to be vigilant when donating to charities, especially in times of crisis. By exercising caution, utilizing the IRS’s TEOS tool, and being aware of the warning signs, individuals can ensure that their donations are making a genuine difference and supporting those in need.Analysis
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