MoneyGram Warns Consumers: Do Not Let Charity Scams Tug at the Heart and
Pull at Your Wallet
Tax-time brings attention to fake charity scams with promises of big
DALLAS -- March 13, 2013
MoneyGram (NYSE: MGI), a leading global money transfer company, is warning
consumers who are in a giving mood not to get taken by a charity scam this tax
During 2012, the company says victims of charity scams lost an average of $824
each time they sent money intended for a non-profit organization.
“There are a couple key times during the year when consumers think about
charitable giving – at the end of the year and as they prepare their tax
returns and tally their charitable deductions. During these times, they may
notice they are receiving an increase in charity and giving requests by
e-mail, mail boxes, and over the phone,” said Kim Garner, senior vice
president of global security and investigations for MoneyGram. “Many of these
are scams; fraudsters prey upon consumers during these times. If a charity
asks for a donation by money transfer, it’s probably a scam. As a rule, never
send a wire transfer to someone you don’t know – you may lose the money and
the intended tax deduction as well.”
“It would certainly be unusual for a charity to request a donation via
MoneyGram.Before giving, donors are well advised to find out if the charity
meets the 20 Better Business Bureau (BBB) charity standards by visiting
give.org,” says H. Art Taylor, president and CEO of the BBB Wise Giving
Alliance. “And, also confirm if the charity has received charitable tax-exempt
status from the IRS, especially if you intend to claim a deduction at tax
The charity scam occurs when a fraudster asks a victim to donate to a
particular cause or organization. The organization may sound similar to a
legitimate charity, and may even have a fake website made to look like an
organization’s official site. In all cases, the scam ends the same way: A
victim wires money and cannot get it back.
Garner says there are five red flags that signal a likely charity scam:
*Name Game: The name of the organization is similar to a well-known
charity, but is slightly off – such as the word “United” instead of
“American” or “Organization” instead of “Association.”
*High Pressure: The caller needs an immediate answer and asks you to donate
without taking the time to do any research into the cause or organization.
*Cash Only: The organization will only accept cash through a wire transfer
– legitimate non-profit organizations accept multiple forms of payment.
*Lack of Information: Anyone soliciting donations should be able to answer
questions about the organization. If they can’t answer questions, hang up
or delete the email.
*Prize Patrol: A legitimate organization won’t guarantee a prize for a
donation. If they do, it’s a scam.
Garner advises consumers to keep their hard-earned dollars in their own
pockets by following the three Rs – recognize, react and report.
*Recognize: Savvy consumers should look for red flags when someone they
don’t know asks them to send money through a wire service or money order,
because scammers often request these methods knowing that once the money
is sent, it cannot be retrieved.
*React: When they identify a scam, consumers should immediately put an end
to any transaction or conversation – hang up the phone, delete the email,
or end the back-and-forth messaging.
*Report: Report the suspected scam to the local police, and file reports
with the Federal Trade Commission, National Consumers League and Internet
Crime Complaint Center (if the suspected fraud was online).
Consumers should call 1-800-MONEYGRAM (800-666-3947) if they believe MoneyGram
was used to wire money as a result of a scam. This information can be helpful
in stopping others from being scammed by the same scheme. Since mid-2010,
MoneyGram has prevented millions of dollars in suspected fraudulent activity,
put those dollars back in the pockets of consumers, and kept the funds out of
the hands of scammers.
As part of the company’s ongoing efforts to protect consumers from fraud,
MoneyGram recently launched an enhanced version of its fraud prevention
website – moneygrampreventfraud.com – or Spanish website at
moneygramprevenciondefraude.com – where consumers can arm themselves with
information to prevent monetary losses.
About MoneyGram International
MoneyGram International, a leading money transfer company, enables consumers
who are not fully served by traditional financial institutions to meet their
financial needs. MoneyGram offers bill payment services in the United States
and Canada and money transfer services worldwide through a global network of
more than 310,000 agent locations – including retailers, international post
offices and financial institutions – in 197 countries and territories. To
learn more about money transfer or bill payment at an agent location or
online, please visit moneygram.com or connect with us on Facebook.
Sophia Stoller / Mike Gutierrez, 214-303-9923
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