February 5, 2016 | Read Time: 2 minutes
A charity watchdog group is warning nonprofits about a fake-check scam that targeted at least 18 groups in the Richmond, Va., area, and is potentially affecting other organizations across the country.
The Better Business Bureau’s Wise Giving Alliance said in a news release that the Virginia charities received emails from a person identified as”Kenneth McFarlane” who expressed interest in making five-figure donations. Once the donations were deposited, Mr. McFarlane, a supposed philanthropist from London, allegedly said a mistake had been made and asked for some of the money back.
Three of the targeted nonprofits deposited checks from the supposed donor but later discovered they were phony. None of the groups sent money back to the scammer, according to the BBB’s Central Virginia branch.
The scam is likely not contained to Virginia, said Bennett Weiner, chief operating officer for BBB Wise Giving Alliance, making it urgent to get the word out about the con.
Nonprofits should use common sense in dealing with donors they don’t know, Mr. Weiner said, especially those looking to give large sums. If someone asks an organization to return money they’ve donated, that’s a red flag that something is wrong, he said.
“It’s an old scam with a new twist — instead of targeting individuals, or in some cases businesses, they are going after nonprofits,” Mr. Weiner said.
Charities should report any suspicious emails or activity to their state’s attorney general’s office, he added.
Warning Signs
Jennifer Purser, administrative director for the Paralyzed Veterans of America Mid-Atlantic Chapter, said she was emailed by the scam artist earlier this month and promptly notified her local BBB.
There were several warning signs about the email, Ms. Purser said. For starters, it’s highly unusual for communication surrounding a $30,000 donation — the amount the individual said he would give — to be done entirely through email. Gifts of that size usually start with a phone call, with follow-up meetings scheduled, Ms. Purser said.
Also, the individual purported to be from a real architecture firm in Britain, but the phone number he provided did not match the company’s number. The mid-Atlantic branch of Paralyzed Veterans of America, one of 34 chapters across the United States, rarely gets donations from overseas, Ms. Purser said, especially such a large one.
Ms. Purser said she was happy her gut instinct proved correct in this case but was angered that someone would go through so much effort to con organizations that are trying to do good.
“I was kind of mad because you’re taking advantage of an organization that works with paralyzed veterans, or at least you’re trying to,” she said.
