Two departments jointly issued a risk alert to guard against scams posing as charitable actions.
In recent years, some criminals have exploited the characteristics of the Internet, such as its strong concealment, wide dissemination, fast fund transfers, and the difficulty in law enforcement, to commit fraud and other illegal activities under the guise of charity, or by impersonating charitable organizations. They have used terms like “donation cashback,” “donation rebates,” “matching donations,” “investment flows,” and “public welfare finance” to deceive people, severely infringing upon the legitimate rights and interests of the public and significantly damaging the credibility of charitable organizations and the image of the charitable sector.
On December 18, The Paper reported from the Ministry of Civil Affairs that in order to enhance anti-fraud education efforts in the charity sector and improve the public’s awareness and ability to recognize and prevent related scams, the Criminal Investigation Bureau of the Ministry of Public Security and the Charity Promotion Department of the Ministry of Civil Affairs jointly issued a risk warning.
The Ministry of Civil Affairs warned against scams under the pretexts of “donation cashback,” “donation rebates,” “matching donations,” “investment flows,” and “public welfare finance.” For instance, a woman in Beijing received a call from a stranger claiming that by adding a customer service WeChat account, she could receive small home appliances. She added the customer service account, only to be added to a group chat focused on order manipulation, where scammers impersonated customer service representatives and group members, fabricating successful cashback screenshots to make her believe it was real. Subsequently, she transferred amounts ranging from 5 to 800 yuan to the accounts of five charitable organizations provided by them, and apparently received cashbacks. Driven by profit, she gradually increased her order manipulation amounts, ultimately losing more than 690,000 yuan.
Additionally, the Ministry mentioned that some criminals impersonate national agencies, claiming to possess enormous funds that they plan to donate through a certain charitable organization, demanding a percentage of the donation to be returned in the form of cash to designated “intermediaries” or interested parties after the donation is completed. Other criminals have also imitated the style and content of certain foundation websites, fabricating national policy documents, creating counterfeit websites, developing bogus mobile apps, pretending to be foundation leaders for online presentations, and using deceptive customer service tactics to entice unaware individuals into purchasing so-called “poverty alleviation projects” in the name of charity, thereby conducting online fraud.
Moreover, some criminals exploit the urgent need of patients with serious illnesses for assistance or donations, using the pretext of knowing about a foundation’s “matching donation” projects, “investment flows,” or “public welfare finance” projects, often promising high returns, to commit fraud. The so-called small returns some patients received early on were actually generated by transferring funds among patients. Many victims acquired their principal through online loans and borrowing, suffering losses ranging from tens of thousands to hundreds of thousands or even millions. Only later did they realize they could no longer withdraw their investments.
The Ministry of Civil Affairs clearly stated that the Charity Law of the People’s Republic of China defines charitable donations as voluntary and gratuitous activities of individuals, legal persons, or unincorporated organizations based on charitable purposes. The core essence of charitable donations is public welfare and non-profit nature. The public should remain vigilant against any claims that profits can be obtained through donations or promises of large donations that require upfront payments, to avoid falling victim to tempting offers.
The Ministry pointed out that the Charity Law also defines charitable fundraising as activities where charitable organizations raise funds based on charitable purposes, which includes both public fundraising aimed at the broader public and targeted fundraising for specific individuals. Before donating to an organization, the public can inquire via the national charity information disclosure platform “Charity China” (cszg.mca.gov.cn) whether the organization is legally registered as a charitable organization with the Ministry of Civil Affairs and whether it has public fundraising qualifications. When confronted with some “donation” links, individuals should strengthen their verification of related bank account information and enhance their risk prevention awareness.
Similarly, charitable organizations should verify the identity of donors, the source of donations, and the legality of the funds before accepting large donations. They should authenticate a donor’s background and credit status through official channels to ensure the validity of the donations.
The Ministry also emphasized that any organization or individual that discovers fraudulent activities under the guise of charity or impersonating charitable organizations to defraud property should report to the police immediately. Charitable organizations that find their names being misused by other organizations or individuals for fraudulent activities should promptly collect evidence, report to the police, cooperate in investigations, and clarify the situation to the public.
