Disasters open door to scam artists posing as charities

Personal Finance. By Katherine Vogt, AMNews staff. Oct. 10, 2005.

When Richard Ambur, MD, heard about the devastation wrought by Hurricane Katrina, he did what millions of others have done: He opened his wallet to contribute to relief efforts.

The Silverdale, Wash., orthopedic surgeon first tried calling the Red Cross several times but couldn't get through. Ultimately, he made his way to a local office of the relief organization and made a donation in person.

Despite these obstacles, Dr. Ambur's attempt to donate was made simpler because he knew which organization he wanted to support.

But with new relief efforts springing up faster than most people can write a check, the question of where or how to contribute money is increasingly confusing. And heart-wrenching pleas for help in e-mails, phone calls and advertisements only make it harder to decide which solicitations are legitimate and which are not.

As in the aftermath of other disasters, authorities say scheming con artists have pounced on the opportunity to take advantage of the shock of Katrina with both fake charities and investment scams. Even the most cautious people can fall victim because the scams are so effective at plucking heartstrings.

"In the emotion of the moment, people think, 'Here's a call, here's my credit card number. I do want to give to this,' " said Bennett Weiner, chief operating officer of the BBB Wise Giving Alliance, a national charity watchdog affiliated with the Better Business Bureau.

Evidence that such types of sordid activity may be lurking in cyberspace and elsewhere is mounting. The FBI said that by Sept. 14 -- roughly two weeks after the storm slammed into the Gulf Coast -- nearly 4,000 Katrina-related Web sites had been registered.