Please be on alert! Common Good Vermont has received reports from multiple VT nonprofits who have encountered similar fraudulent donor scams in recent days.
The scam looks something like this:
- Initial Contact: A person (in many recently reported cases their name was “Ethan Baker”) reaches out via email or through a website contact form with a Gmail address and says they want to make a sizeable donation (usually $2000-$5000).
- Fake Check: A check arrives (usually FedEx) for an amount greater than the amount they said they want to donate.
- Refund Request: If the organization doesn’t question the amount, the individual will reach out and say they’ve mistakenly sent too much and need a portion of the funds back. They then will provide bank information to transfer the refund or request a check.
- The Scam: It takes up to 7 days for the check to bounce, and by that time, the organization has already sent the scammer money for the refund. The organization is then not only out the money they refunded to the scammer, but also any bank fees incurred.
Take precautions:
- Verify the identity of new, large donors
- Do not issue refunds until the original check has cleared
- Confer with you bank about any suspicious looking checks
- Know that small organizations are more likely to be targeted
- This scam can also be done by credit card, where the donor makes a donation online, files a chargeback, then requests a refund – always ask IN WRITING if a donor has requested a chargeback before processing a credit refund
- Educate your team so that all are aware of this scam!
Report any instances of scams/fraud to the Attorney General’s Consumer Assistance Program.