How to Detect a Fraudulent Crowdfunding Campaign
Crowdfunding campaigns are an effective way to help people in need. But the news that the couple conspired with a homeless man to create a heartwarming Good Samaritan story to trick people underscores the importance of checking viral positive stories before donating.
Mark D’Amico, Keith McClure and Johnny Bobbit Jr. are indicted for second-degree theft through deception and second-degree conspiracy after they reportedly created a fake good deed story and raised over $ 400,000 on the GoFundMe crowdfunding platform. McClure and D’Amico claimed that homeless Bobbit Jr. gave McClure his last $ 20 when her car ran out of gas. The story attracted huge press attention before it started to unfold. GoFundMe said it will return the money to donors .
Pretty much anyone can create their own campaign, although scams of this magnitude are rare, according to Consumer Reports . However, you must be careful when handing out money, especially during the holidays when fraud is on the rise when thieves are trying to take advantage of people’s goodwill.
Crowdfunding campaigns offer some oversight (and can give you money back if you were tricked; read the fine print), but not to the extent that non-profits and charities do, which means you have to be a little more choosy about campaigns. which you support.
How to recognize fraud
So what should you look out for when donating money on crowdfunding platforms? CR recommends donating to people you already know and trust.
If you don’t know the person, don’t donate first or one of the first. Wait for a few more people to donate and read the comments left to see if anything suspicious comes up. If the campaign achieves its stated goal, consider donating elsewhere as there is no guarantee where the additional funds will go.
During disasters such as natural disasters or massacres, platforms like GoFundMe will create verified campaign pages that the company has verified itself. This is an additional layer of security. For example, here’s a page about bushfires in California .
Another tip we covered earlier : Do a reverse search on your campaign image on Google:
If you’re using Chrome, just right-click your main photo on the GoFundMe page and select Search Google Image. If you see a lot of results, scammers have likely stolen this photo in order to use it in their fake campaign.
Also, check the presence of the campaign administrator on social media, and “Google recipient name and“ complaint ”,“ review ”,“ rating ”or“ scam ”” suggests Marketwatch . Avoid pages with little or no information or details.
Obviously, this is not a reliable system. People you don’t know will still need donations for health care, natural disasters, and more, and you should do that if you can. Just be a little more vigilant on sites like GoFundMe to know your money will go to a good cause.