The surge of charitable giving supporting survivors and rebuilding efforts after the Aug. 8 Maui wildfires that killed 100 and left 7,500 homeless highlights the need to watch out for fraud, the state Department of the Attorney General emphasized this week.
As of Sept. 19, more than $200 million has been raised by five of the top sources of private donations and their affiliates for Maui wildfire victims, with charitable funds coming from hundreds of thousands of donors in Hawaii and around the world.
No criminal charges have resulted from fraudulent charitable solicitations related to the Maui wildfires that destroyed Lahaina and caused $5.5 billion in damage.
“The Tax and Charities Division continues to receive reports and inquiries regarding organizations soliciting donations for Maui fire relief that are not actually registered charities,” Paula Youngling, charities program administrator, told the Honolulu Star- Advertiser. “Through follow- up efforts by the Department of the Attorney General, several unregistered organizations have registered with the department. Others are currently the subject of further inquiry and scrutiny.”
Americans lost $8.8 billion to fraud in 2022, according to the Federal Bureau of Investigation, and in Hawaii people over the age of 60 were the most susceptible. Hawaii residents lost $16.3 million to fraud last year.
Youngling’s hiring was announced by state Attorney General Anne E. Lopez on Monday at the start of International Charity Fraud Awareness Week. She said she is “excited” about her new role during a challenging time.
“I believe our responsibilities to the public during this time are very important,” she said. “I want to ensure that the people of Hawaii who make charitable donations are informed about the easily accessible tools and resources available to help them make informed giving decisions in order to avoid scam charities and suspicious fundraisers.”
The week of awareness is marked by state charities regulators nationwide, the National Association of State Charities Officials and the Federal Trade Commission, according to the state. The aim is to help donors and charities “avoid charity fraud and to promote informed giving.”
“In the wake of the Maui wildfires, the Department of the Attorney General’s participation and support of this global campaign has taken on greater meaning,” said Lopez, in a news release. “Ensuring that charitable donations go directly to reputable and legitimate charities is a critical government concern as our state has seen a wave of donations and increased fundraising efforts to help victims and assist in the recovery relief effort on Maui.”
“Our goals are to continue to raise awareness so that the people of Hawaii can make informed and thoughtful decisions about the charities we choose to support and to ensure bad actors do not exploit our goodwill,” Lopez said. “We have received reports and complaints of organizations and fundraisers soliciting donations for Maui fire victims. I urge everyone to be vigilant and utilize publicly available resources to help people avoid suspicious fundraisers and scammers pretending to be charities.”
The U.S. Department of Justice put out a warning about possible fraud schemes in Hawaii a week after the Maui wildfires.
After disasters, fraudsters create fake charities to solicit donations by either using the names of well-known charities or “reasonably presenting as charities that can assist in a disaster,” according to a release from the U.S. Attorney’s Office.
Some crooks impersonate government officials and promise disaster assistance if victims provide money or personal information, including information like dates of birth, Social Security numbers and bank account information, which should never be shared.
Other crooks pose as insurance provider representatives requesting money and personal information.
Some solicit victims to invest in nonexistent businesses and ventures “offering recovery services such as cleanup, rebuild options and products to make homes more resistant to future disasters such as wildfires.”
“We know that during periods of tremendous need like this, criminals do not hesitate to take advantage of the challenging times to commit fraud and other crimes,” the release said.
WHERE TO CHECK CHARITIES
To verify a Hawaii charity is legitimate before donating, check its status:
>> Hawaii Attorney General: charity.ehawaii.gov/charity/welcome.html
>> IRS Tax Exempt Organization Search: apps.irs.gov/app/eos/
>> Charity Navigator: charitynavigator.org/
>> DCCA Business Search: hbe.ehawaii.gov/documents/search.html
Any questions or complaints about a suspicious charity or fundraiser can be directed to the Tax and Charities Division at 808-586-1480 or by sending an email to ATG.Charities@hawaii.gov.
People who have been targeted by fraudsters or have been the victim of disaster-related fraud are encouraged to contact the National Center for Disaster Fraud at 866-720-5721 or online at justice.gov/DisasterComplaintForm.
