When a hurricane, flood, or wildfire strikes, most people want to help. Communities come together, neighbors support each other, and donations pour in to rebuild what was lost. Sadly, not everyone who asks for help is honest. Scammers see tragedy as an opportunity. They create fake charities, phony memorial funds, and even try to steal personal information.

This kind of fraud hurts both your wallet and your heart. It’s easy to think you’re helping families in need, only to learn later that your generosity went straight to a criminal. That’s why it’s so important to recognize the warning signs before you give.

How scammers take advantage of disasters

The news is full of heartbreaking stories after a major storm or earthquake. Scammers know emotions are running high. They use urgency and guilt to push people into giving without thinking.

Some pretend to be well-known organizations like the Red Cross or United Way. Others make fake social media pages with photos of destroyed homes or injured pets. There are also phishing emails and scam texts that look like legitimate disaster relief requests. Many even use phone calls, claiming to be volunteers collecting donations.

While some fraudsters just want your money, others have a bigger plan. They try to collect personal details like your full name, address, and banking information. Then they can commit identity theft, open accounts in your name, or sell your data to other criminals.

Warning signs of fake charities

Legitimate charities are clear about their mission and how they use donations. Scammers often copy names that sound like real organizations, but there are clues that something’s wrong.

Look out for these red flags:

  • Pressure to act fast. Real charities will gladly accept your donation later. Scammers often say “time is running out” or “families need help right now.”
  • Unclear details. If the charity can’t explain who they’re helping or where the money goes, it’s a bad sign.
  • Odd payment methods. Be cautious if they only accept cash, gift cards, or wire transfers.
  • No official website. Fake groups may have a simple social media page or a website full of spelling mistakes.
  • Strange email addresses. A legitimate charity won’t use a personal Gmail or Yahoo account.

Imagine this scenario. After a tornado, you see a post online from “The Red Cross Disaster Fund” with a link to donate. It looks convincing, but the web address has an extra letter. It’s a fake page designed to steal your credit card number.

Fake memorial funds exploit tragedy

Another awful scam involves fake memorial or family support funds. After a disaster, you see online fundraisers claiming to help a grieving family. While many are real, scammers copy photos from news stories or social media and create fake GoFundMe pages.

Here’s an example: After a severe flood, scammers created a fundraiser for a “local teacher” who supposedly lost her home and belongings. They used photos from news articles and shared a heartbreaking story on social media. Hundreds of kindhearted people donated, but the teacher didn’t even exist. The money went straight into the scammer’s pocket.

If you want to give to a memorial fund, check local news outlets or talk with community leaders. Often, a well-known church, school, or verified family member will organize the real fundraiser.

How disaster scams lead to identity theft

Not all fraud after a disaster is about donations. Some scams focus on stealing personal information. They might say they need your details to send you a receipt for tax purposes. Or they’ll ask for banking information so they can process your donation faster.

Once they have your personal data, they can:

  • Open credit cards or loans in your name
  • Access your existing bank accounts
  • Sell your information on the dark web

This kind of identity theft can take months or even years to untangle. It’s why you should always share the bare minimum when donating. A real charity only needs your name and payment information , never your Social Security number or full banking details.

How to verify a charity or memorial fund

Before you donate, take a few minutes to double-check the organization. It could save you a lot of money and stress. Here’s how:

  1. Look up the charity’s name online. Search for reviews, news stories, or scam alerts.
  2. Visit trusted charity rating sites. CharityNavigator.org and the BBB Wise Giving Alliance can confirm if the group is legitimate.
  3. Check the web address carefully. Real organizations use correct spelling and often end in “.org.”
  4. Call directly. Don’t rely on the number in a text or email. Find the official number and ask how to donate.
  5. For memorial funds, verify with the family. If that’s not possible, see if a reputable local organization is connected to the fundraiser.

If you’re still unsure, stick to well-known national charities or local groups you already trust.

How 1st Source Bank helps protect you

Your bank plays a big role in protecting you from natural disaster fraud. At 1st Source Bank, you can set up account alerts that notify you of unusual activity. Our fraud protection team also monitors for suspicious transactions, especially after major events when scams are more common.

If you ever think you’ve been tricked by a fake charity, contact us right away. We’ll help you secure your accounts and guide you on the next steps.

Final thoughts

Generosity after a disaster is powerful. It helps rebuild homes, heal communities, and bring hope to families who’ve lost everything. But your kindness only makes a difference if it reaches the right people.

Take a moment to verify where your donation is going. Trust your instincts if something feels off. And always protect your personal information.

Want to know more tips on avoiding fraud?  Check out our advice page. Together, we can make sure your support goes where it’s truly needed.