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13/02/2004
Charities urged to be viligant against new fraud scam
Charities across the country risk having their bank accounts emptied by a new fraud, the Charity Commission has warned today.
It has emerged that charities are cheated when they receive a generous - but bogus - cheque, but are subsequently asked to repay half the sum because of a claimed administrative error by the unscrupulous 'donor'.
If unsuspecting charities repay this money, they find that the original cheque bounces, leaving them robbed of thousands of pounds.
Over 100,000 charities have an income of less than £10,000 and this fraud could potentially wipe out a significant chunk of their income.
The new fraud was unearthed when the Brian Byrnes Memorial Fund, a charity which supports Bangladeshi orphans, received a cheque for £4,500 – which would have quadrupled the charity's current income. Before the charity cashed it in, it was asked to return £2,500 to a different bank account.
Chairman of the charity's trustees, Peter Byrnes, said: "It was so believable - the cheque was from a genuine bank and I spoke to the donor on the phone several times. We're used to spotting scams, but because we received a cheque from an individual, we took it as legitimate. I'm just relieved we didn't make any repayment, as the cheque bounced."
Simon Gillespie, director of operations at the Charity Commission, said that this was a "very sinister operation" because it was so plausible.
Mr Gillespie urged all charities to be vigilant and never return any donation before the cheque has cleared.
If trustees have any suspicions they should contact their local police or call the Commission's helpline on 0870 333 0123.
(gmcg)
It has emerged that charities are cheated when they receive a generous - but bogus - cheque, but are subsequently asked to repay half the sum because of a claimed administrative error by the unscrupulous 'donor'.
If unsuspecting charities repay this money, they find that the original cheque bounces, leaving them robbed of thousands of pounds.
Over 100,000 charities have an income of less than £10,000 and this fraud could potentially wipe out a significant chunk of their income.
The new fraud was unearthed when the Brian Byrnes Memorial Fund, a charity which supports Bangladeshi orphans, received a cheque for £4,500 – which would have quadrupled the charity's current income. Before the charity cashed it in, it was asked to return £2,500 to a different bank account.
Chairman of the charity's trustees, Peter Byrnes, said: "It was so believable - the cheque was from a genuine bank and I spoke to the donor on the phone several times. We're used to spotting scams, but because we received a cheque from an individual, we took it as legitimate. I'm just relieved we didn't make any repayment, as the cheque bounced."
Simon Gillespie, director of operations at the Charity Commission, said that this was a "very sinister operation" because it was so plausible.
Mr Gillespie urged all charities to be vigilant and never return any donation before the cheque has cleared.
If trustees have any suspicions they should contact their local police or call the Commission's helpline on 0870 333 0123.
(gmcg)
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Police have arrested 35 people across the UK in connection with a major investigation into multi-million pound cheque fraud. The arrests were made following a series of dawn raids, involving around 400 police officers, at 36 addresses across London, Surrey, Kent, Cambridgeshire, West Midlands, West Yorkshire and Manchester.
35 arrested in £20 million pound cheque fraud
Police have arrested 35 people across the UK in connection with a major investigation into multi-million pound cheque fraud. The arrests were made following a series of dawn raids, involving around 400 police officers, at 36 addresses across London, Surrey, Kent, Cambridgeshire, West Midlands, West Yorkshire and Manchester.
26 January 2004
OFT warning over bogus doorstep charity collectors
As Britons begin think about spring cleaning, the Office of Fair Trading (OFT) has warned the public to be wary of bogus charity clothing collections – a practice which costs genuine charities around £1 million a year.
OFT warning over bogus doorstep charity collectors
As Britons begin think about spring cleaning, the Office of Fair Trading (OFT) has warned the public to be wary of bogus charity clothing collections – a practice which costs genuine charities around £1 million a year.
24 February 2005
Charities warned of 'nasty' new scam
The Charity Commission has issued a warning to charities to be on the alert for a 'clever but nasty new scam', which could lead to organisations having their bank accounts emptied.
Charities warned of 'nasty' new scam
The Charity Commission has issued a warning to charities to be on the alert for a 'clever but nasty new scam', which could lead to organisations having their bank accounts emptied.
24 May 2006
Charities 'fail to hear complaints'
More than two-thirds of charities do not have complaints procedures in place, a new report has revealed. The Charity Commission survey, to which 1,129 charities responded, found that 69% did not have a complaints procedure in place.
Charities 'fail to hear complaints'
More than two-thirds of charities do not have complaints procedures in place, a new report has revealed. The Charity Commission survey, to which 1,129 charities responded, found that 69% did not have a complaints procedure in place.
05 March 2008
Charities To Lose 'Millions' Over Tax Changes
Charities have been warned that they stand to lose out on around £90 million when the new lower income tax rate is introduced next month. The Charities Aid Foundation (CAF) said that the drop in the basic rate of income tax will reduce the amount of gift aid that charities can claim on donations.
Charities To Lose 'Millions' Over Tax Changes
Charities have been warned that they stand to lose out on around £90 million when the new lower income tax rate is introduced next month. The Charities Aid Foundation (CAF) said that the drop in the basic rate of income tax will reduce the amount of gift aid that charities can claim on donations.
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