Did you fall victim to charity fraud? Here’s what to do next

RICHMOND, Va. (WRIC) -- Giving Tuesday encourages people to be generous, and one way to do that is to donate to charity. But not every charity is created equally, and some might not be charities at all.

Charity and donation scams are a form of fraud where bad actors pose as real charities to steal victims' money and information. According to the American Association of Retired Persons (AARP), the best way to avoid being scammed is to slow down and take another look.

"They don't want you to think. They want you to react. They want your reflex," said John Pritchett with AARP.

Like most scams, charity and donation scams will create a sense of urgency to get a target's money quickly. The scam usually begins with an unexpected communication, where they contact a person and make a plea for a donation, often with an emotional appeal. They could use a name similar to a real charity.

"It's not [from] United Way, it's from 'United Way Plus.' It's not American Red Cross, it's 'American Red Cross of Virginia,'" Pritchett said. "They're trying to tweak the name a little bit to look legitimate, but they're not."

Another tell that a charity is not legitimate is asking for an unusual payment method. Pritchett said real charities don't collect money from gift cards or cryptocurrency.

Pritchett recommends using websites like CharityNavigator.org to research an organization, and find the best way to donate.

Anyone that may have donated to a fraudulent charity is encouraged to report it immediately.

"One of the sad truths is [that] about one-third of the people that are victims of any kind of fraud don't report it because they're embarrassed. No need to be embarrassed, you're the victim. You're always the victim. They're smart. They practice every day," Pritchett said.

"If you're a victim, work with your bank [or] financial institution to see if they can place a 'stop payment method,'" Pritchett said.

Once contacting the bank, victims can file a complaint with the Federal Trade Commission or with their local police department's crime watch division.