Online fundraising is a powerful tool for good! But, unfortunately, as online giving becomes more common, nonprofits are becoming targets for online scams using stolen credit cards and fake checks. GlobalGiving has developed robust systems to protect our partners from fraudulent donations but we believe there’s more we can do to raise awareness about potential risks within the nonprofit community. On Wednesday, August 20th, we hosted a webinar to shed light on the different types of fraudulent activity that we have encountered, to share the mechanisms that we have put in place to protect our partners, and to propose steps your organization can take to safeguard against these scams.
The webinar was hosted by Nick Hamlin, GlobalGiving’s Business Intelligence Analyst, who leads the charge in identifying irregular activity and reversing fraudulent donations. We were also joined by Rebecca Davis, the Founder of Rebecca Davis Dance Company (RDDC), who offered to share her organization’s experience with fraud to help other organizations identify risky activity.
You can watch a recording of the webinar here. (You can earn a “Listen” point on your effectiveness dashboard by watching this recording!) Check out a brief summary is provided below.
Why worry about fraud?
Non-profits rely on trust, time, and funding to accomplish their mission but fraud can compromise all three and reduce your impact!
Four Common Types of Fraudulent Activity:
Stolen Credit Card Testing
- What happens?
- Fraudsters obtain lists of stolen credit card numbers
- Before using them, they need to test if they work
- Make a small donation on GG before larger purchases elsewhere
- Small transactions (usually 10-50 USD)
- Donors you’ve never heard of before
- Strange email addresses
- How is GG protecting my organization from this?
- Our system rejects many stolen cards automatically
- Automatic regular scans to identify donations that succeeded
- Preemptive reversals and notifications to you
- Known fraudsters are no longer allowed to use GG
Fake Large Donor (more…)