Watch Out For Scam Charities

October 3, 2005: The Internal Revenue Service issued a consumer alert about possible scams taking place in the wake of Hurricane Katrina and other recent natural disasters.

Such fraudulent schemes may be perpetrated through the telephone, Internet, e-mail or in-person solicitations. The IRS cautions hurricane victims and people wishing to make disaster-related charitable donations to avoid unscrupulous scam artists by following these tips:

1. The IRS has established a toll-free disaster assistance telephone number, 1-866-562-5227, specifically for hurricane victims. Whenever a matter involves tax relief or tax refunds, the first step a disaster victim should take is to call the IRS.
2. For others, donate to recognized charities.
3. Be wary of charities use names or Web sites that sound or look like those of respected, legitimate organizations. The IRS Web site at IRS.gov has a search feature that allows people to find legitimate, qualified charities to which donations may be tax-deducible. Legitimate charities may also be found on the Federal Emergency Management Agency (FEMA) Web site at fema.gov.
4. Don't give personal financial information - such as Social Security numbers or credit card and bank account numbers and passwords - to anyone who solicits a contribution from you. Scam artists use this information to steal your identity and financial resources.
5. Don't give or send cash. For security and tax record purposes, contribute by check or credit card. Write the official name of the charity on your check.