# Charity Commission warns charities of credit card scam

- Link: https://fundraising.co.uk/2013/06/28/charity-commission-warns-charities-credit-card-scam/
- Published: 2013-06-28T10:21:52+01:00
- Author: Howard Lake

Based on information from the Serious Organised Crime Agency, the Charity Commission
has alerted charities to a credit card scam and is advising them to look out for
suspicious transactions.

The scam involves a fraudster contacting a charity to let them know that they will
donate a large sum of money. They will do this, however, only if the charity sends
half of the donation to another specified charity. This turns out to be the personal
bank account of the fraudster. The 'donation' is made using a stolen or compromised
credit card. If the charity falls for the scam it will unwittingly have become involved
in money laundering.

Warning signs that charities should look out for include

## Advertisement

 *  unusually large amounts
 *  conditions
 *  complex banking and transfer arrangements
 *  or a donation which in reality is some kind of loan.

Michelle Russell, Head of Investigations and Enforcement at the [Charity Commission](http://www.charitycommission.gov.uk/)
said:

“Fraud is a real threat to charities of all sizes – the National Fraud Authority’s
2013 Annual Fraud Indicator report shows that nearly one in ten charities with income
over £100,000 have reported they have been the victim of fraud in the last financial
year. Whilst this year’s report only sampled charities with income over £100,000,
this is not to suggest that smaller charities do not experience fraud, as we know
they do.

"It is vital that all charities, whatever their size, do not become complacent and
ensure they have financial controls and policies in place to both prevent fraud 
occurring, and deal with it when it does happen. Most donors are honest and genuinely
want to help charities, but we need to be vigilant and stop the fraudsters.”

If charities have concerns about a suspicious donation, they should report this 
to [Action Fraud](http://www.actionfraud.police.uk/) and the police. Charity [trustees should also report serious incidents to the Commission](https://fundraising.co.uk/2013/06/28/charity-commission-warns-charities-credit-card-scam/**@***********************ov.uk)
as soon as they suspect them.

_Image: [Credit card fraud](http://www.shutterstock.com/pic-79512706/stock-photo-credit-card-and-padlock-d-illustration.html)
by nobeastsofierce on Shutterstock.com_

 * **[National Convention to celebrate 30th anniversary of Institute of Fundraising](https://fundraising.co.uk/2013/06/28/national-convention-celebrate-30th-anniversary-institute-fundraising/)**(
   28 June 2013)
 * **[Born Free’s Big Cat Nap week invites supporters to do nothing for charity](https://fundraising.co.uk/2013/06/29/born-free039s-big-cat-nap-week-invites-supporters-do-nothing-charity/)**(
   29 June 2013)
 * **[Fundraisers optimistic about major gift income over next two years](https://fundraising.co.uk/2013/07/01/fundraisers-optimistic-about-major-gift-income-over-next-two-years/)**(
   1 July 2013)