HONOLULU (KHON2) — The Department of Attorney General is warning Hawaiʻi nonprofits about scams involving fake donation checks.
City officials state that fraudulent donors send checks with large amounts and request a portion of the check be refunded, before the nonprofit discovers the check is fake.
Alias names like “Leonardo Kotlar” and “Give To Help Foundation” have been previously used by fraudulent donors, so pay close attention.
Eunice Park, Charities Program Administrator with the Department’s Tax and Charities Division, said that these scams are designed to take advantage of the kindness of charities and the people they help.
Park urges charities to be careful from this point on, to double-check donations before using them, and to report anything that seems suspicious.
It is highly encouraged that Hawaiʻi nonprofit leaders check their current financial controls and policies and follow these steps to stay safe from scams:
- Verify donors: If someone unknown donates money, verify their identity and the legitimacy of the donation.
- Check the check: Make sure the bank is legit. Fake checks can include real bank names.
- Wait for clearance: Don’t send money back or spend it until the check fully clears. Do not rely on money from a check unless you know and trust the donor with whom you are dealing.
- Set rules: Have policies so that more than one person has to approve refunds or wire transfers. Always wait for a check to clear before giving any refunds.
The Department of Attorney General is encouraging the public to be cautious, especially with the way scams are happening nowadays.
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If you have any questions or complaints about a scam or suspicious donations, you can reach out to the Department of the Attorney General’s Tax & Charities Division at 808-586-1480, or you can send an email to ATG.Charities@hawaii.gov.