Scams on the rise

By Fancea O'Neill from NICVA

Published on 21 Aug 2006

Scams on the rise for Northern Ireland charities.

Scams on the rise for NI Charities

Two recent stories highlight the need for vigilance in the financial affairs of charities.

'Bouncing cheque' donation scam
Wire Fraud (Money transfer) alert for NI Charities

Bouncing Cheque Donation Scam

A new scam could cheat charities out of thousands of pounds, Charity Commission officials warned today. The bogus donation cheques - some as high as £6,000 - have been sent to good causes across the UK, with a note asking the charity to return up to half the total donation to the fraudsters. If unsuspecting charities buy into the story and repay part of the donation, they find that the original cheque bounces, leaving them robbed of vital funds.

David Locke, Head of Charity Services at the Charity Commission said:

'Charities know that if a donation sounds too good to be true it probably is, but these fraudulent companies work hard to look as plausible as possible. Charities should treat requests to return part of a donation with great caution and never release funds before the donation cheque has cleared.'

"Charities who feel they may have been targeted with a similar scam should contact their local police, local Trading Standards office and the Charity Commission directly."

View the full press release.

Wire fraud alert for NI Charities logo for thief

A NICVA member has been alerted by its bank about a written request it received to transfer a substantial amount of money to an account in Singapore. Worryingly the letter contained the group's correct bank details, two scanned signatures to the account and was printed on a duplicated copy of the group’s headed paper. Thanks to the bank’s vigilance, the request was turned down.

NICVA would advise members and other voluntary and community groups to be extra vigilant and ensure their finance and administration staff are made aware of this attempted fraud.

If your group has been the target of a fraudulent act and you would be happy to highlight your case, please contact:

Fancea O’Neill, Head of Finance at NICVA, tel: 028 9087 7777, email: fancea.oneill@nicva.org.