Charity Fraud Essay

1376 words - 6 pages

In the United States a charitable foundation is an organization which has formalized the process of relieving poverty, advancing education, supporting disaster relief, and/or assisting with community projects. Charities are non-profit organizations which can take the form of either a non-operating private foundation (trusts) or operating foundation (public charities). When many of us hear of a tragic event that hits close to home, we give our support with an open heart in order to help others in need. Unfortunately, with this act of kindness we could be creating an environment that is highly vulnerable for fraud perpetrators and fake charity scams.
Charity fraud is the intentional act of deception committed by an individual or group of individuals who ask for contributions in the name of a worthy cause. Perpetrators of charity fraud will take advantage of a tragic event to appeal to the compassion and empathy of donors. They make material misrepresentations about their charity in order to gain the donor’s confidence and trust, and then use high pressure methods to convince them to donate.
Fraud in charitable organizations occurs when legitimate organizations or the individuals working for the organization misuse donations, or when illegitimate organizations or individuals collect donations on behalf of a sham organization. Perpetrators of charity fraud prey on the generosity of their donors through a variety of means. Some individuals may try to get the attention of a passerby on the street requesting cash for the hungry or disabled while others may use telemarketing scams in which the perpetrator tries to convince the potential donor of their legitimacy and the immediacy of financial need for a worthy cause. Yet, the most useful tool provided to the fraud perpetrator has become the internet. With the right emotional appeal together a mix of anonymity, there is almost no better way to convince donors that their money is going towards a worthy cause. Some of the internet’s most notorious charity frauds include the Tsunami Victim scam, 911 Charity scam, and the Nigerian 419 e-mail scams.
One of the more recent charity scams to appear on the internet was when hurricane Katrina decimated New Orleans. Following the tragedy, the Federal Bureau of Investigations estimated that over 2000 websites sprung up claiming to provide either funds or aid to the victims of the disaster. Fraud perpetrators who were following the news closely began creating websites several days before the storm had even made landfall. Internet fraud experts told ABC News that “in the days leading up to Hurricane Katrina, they saw dozens of websites being registered with Katrina in their names”. Many of these websites were created to look exactly like the website used by The American Red Cross, but once the donation was made it was sent to a third party, while the contributor was actually redirected back to the legitimate American Red Cross website. Of course none of the...

Find Another Essay On Charity Fraud

Mother Teresa of Calcutta Essay

652 words - 3 pages Loreto and resided with the Little Sisters of the Poor. There, she provided care to the families in the slums, cleaning them, feeding the children, and tendering wounds. Mother Teresa basically spent her entire life looking after “the unwanted, the unloved, the uncared for.” (“Mother Teresa of Calcutta”) In 1950, Teresa founded a new congregation, the Missionaries of Charity. It started with only twelve members, those including former teachers and

issues and challenge Essay

1384 words - 6 pages charity organization. • Confidence of public and donors Nowadays, lot of fraud organization trying to scam the donations from donors. Besides that, some fraud organizations are pretending World Food to scam donors. In addition, there have many bad news about World Food, for example corrupt. Hence, World Food organization lost confidence of public and donors. Solution: I suggest World Food should needed make more event at those public places

Frauds and Scams: Can You Be Protected from Them?

1721 words - 7 pages Do you know the difference between a fraud and a scam? Many believe they are the same thing, as they both cause harm to innocent people. A scam is usually a scheme or transaction costing a victim to lose money or assets. Examples are asking for money for a charity that doesn’t exist, or tries to sell something that don’t belong to them. People who do these type of scams are referred to as Scammers. Fraud on the other hand is more of a

Mere Christianity

876 words - 4 pages vice, the utmost evil, is Pride. Unchastity, anger, greed, drunkenness, and all that, are mere flea bites in comparison: it was through Pride that the devil became the devil: Pride leads to every other vice: it is the complete anti-God state of mind.” Charity means "Love, in the Christian sense." But love, in the Christian sense, does not mean an emotion. It is a state not of the feelings but of the will; that state of the will which we have

Regulation of Not-for-profit Companies in Australia

2567 words - 11 pages charities, along with ranking systems and ‘blacklists’ of untrustworthy non-for-profit associations known for fraud. International examples of charity watchdogs demonstrate that their evaluation systems usually provide the public with valuable information and services that charity commissions do not. Charity watchdogs acquire their information from publicly available government reports, and voluntary submissions made by the not-for-profit

The Charity Organization Society

2229 words - 9 pages transaction of relief to relief applicants by: maintaining relief applicant requests, records of the aid given to them, and referring those worthy or unworthy to the proper agencies (Trattner, 1999). Their goal was to eradicate fraud and duplicity of services while also maintaining efficiency and treating poverty. The charity organization movement intended to treat poverty by enacting “friendly visitors” to look into each case and define the cause

Nurses- do they get enough respect?

728 words - 3 pages personally think, if the government were a little wiser with their money, they might be able to give nurses a slightly higher maximum salary than £35,000 a year. For example, the government waste £1.2 billion a year on benefit fraud and £300 million on tax fraud. That is a total of £1.5 billion being wasted, and its increasing every year. If the government didn’t make it so easy to claim benefits, nurses might actually get the amount of money they

Normative Ethics: Utilitarianism and Deontology: Module 1 <Tab/>Case Assignment<Tab/>

1375 words - 6 pages enormous amounts of money to charity and done outstanding work with my church. I care more about others than I do myself. Since a good person would not commit accounting fraud and I think that this is a reasonable approach, I am not committing accounting fraud." (Byrne, 2002)Much like blue collar crime, there is no flashing sign that tells you when you enter into the world of white collar crime. When somebody has five drinks and then walks to their car

Identifying and evaluating health related data available on the internet Research area – Smoking

575 words - 3 pages Welfare (AIHW) promote better health and wellbeing and provide authoritative information and statistics and showed that Australia has one of the lowest smoking rates in the world. (AIHW) The cancer council is a renowned community charity dedicated to beat cancer through prevention strategies and research in new treatments and cures. (Cancercouncil) Their website on smoking links to articles, research, smoking care workshops and interactive websites

Greed - Vital to Human Welfare

1118 words - 4 pages Greed - Vital to Human Welfare What's the noblest of human motivations? Some might be tempted to answer: charity, love of one's neighbor or, in modern, politically correct language: giving something back to the community. In my book, these are indeed noble motivations, but they pale in comparison to a much more potent motivation for human action. For me the noblest of human motivations is greed. I don't mean theft, fraud, tricks, or

The Capitalists Who Shaped Post-Civil War America

862 words - 3 pages from reaching the markets by restricting their ability to transport their goods. In Document E, James B. Weaver wrote of the main weapons of the trust-organized commerce: threats, intimidation, bribery, fraud, wreck, and pillage. In many ways, the railroads hurt small shippers and farmers. Extreme competition between railroad companies necessitated some way to win business. To do this, many railroads offered rebates and drawbacks to larger

Similar Essays

Ethical Issue Essay

1256 words - 6 pages ). However, WFP have to do more than that in order to prevent fraud from happening. For example, WFP must actively check any related website that consist of the phrase "World Food Program" from time to time. If there are any fraud websites, it will be found easily with these checks.   X.4 Financial Transparency Issue Internal Revenue Code's (Legal Information Institute, 2014) section 501(c)(3) have mention that charity website like WFP enjoying

Fraud: Early Warning Signs Of Fraud

2467 words - 10 pages fraud, inventory fraud, Ponzi schemes, charity scams, miracle cure scams, and identity theft. Each type of fraud will lead into a discussion of what the fraud is, how it happens, what are the warning signs of the fraud, and what you can do to protect yourself. Physician identity theft is becoming more of a problem every day. This type of fraud can be listed as a sub category under Medicare fraud. Medicare fraud is one of the most well known

Gaming Fraud And Prevention Essay

1381 words - 6 pages losers. Tessin’s reward for the fraud, bigger tips from the players. As of this writing, Tessin had his initial appearance in Federal Court on the felony charge of gaming fraud, and could be facing a prison term of five years. A couple of internal controls that could eliminate dishonest dealers from the card tables. First, although it is a charity game, there still is a chance for the table to run in favor of the players. The house or

Case Study Review

929 words - 4 pages insurance payments and keeping one million dollars for himself, most of which was stashed in his Manhattan apartment that he shared with his wife. Some of the money was funneled to politician’s campaigns, who then kept his nonprofit flush with government funding. The twenty year scheme is alleged to have skimmed five million dollars from the venerable charity. (Hawkins, 2013). The case was brought to light by someone known as a whistle-blower. A