Arizona Attorney General Terry Goddard has announced that Arizona has joined with the Federal Trade Commission and other attorneys general in a nationwide effort to thwart fundraising fraud. This effort, called "Operation Phony Philanthropy", is a joint law enforcement and public education campaign.
Phony fundraising appeals, often made over the telephone, target both consumers and individual business donors.? The FTC listed cases that cover a range of deceptive tactics to solicit donations. Deceptive badge-related fundraising continues to be a high profile problem.? In these types of cases, telemarketers for groups with names related to law enforcement or fire fighters play on the natural impulse of concerned citizens to support their local protectors. Sometimes, the telemarketers misrepresent affiliation with local or county police or some other local institution, which the telemarketers falsely claim will benefit from the donation.? Names like "Firefighters' Assistance Foundation" and "Police and Sheriffs' Support Fund" have been used to collect millions of dollars in donations from unwitting, generous consumers. Phony fundraisers will often misrepresent that donations will benefit the donor's local community, or that donations will support particular programs, such as helping homeless veterans.
Businesses are often targeted to support worthy-sounding causes, like buying ads in law enforcement journals or purchasing things like children's activity books to be donated to local hospitals for use by sick children.
These scams are particularly bad because they prey on the generosity and good hearts of people.? Charitable contributions can be a significant public resource, but people should be able to trust that their donations are going to be used in the way they were represented...☺