The Charity Commission, the independent regulator of charities in England and Wales, has issued an Charity Commission logoalert to warn charities about accepting suspicious donations. The Serious Organised Crime Agency has informed the Commission that a number of charities have been unwittingly involved in a donation scam using fraudulently obtained credit cards.

The scam involves a fraudster informing a charity that they will be donating a large sum of money on the condition that the charity sends half of the donation onto another specified charity that is in fact the personal bank account of the fraudster. For example, the fraudster will offer the charity £100,000 on the condition that it sends £50,000 to another specified charity in another country. When the charity agrees, the payment to the charity of £100,000 is made using a compromised or stolen credit card. The charity keeps £50,000 of the donation and sends the remaining £50,000 to the other specified charity's bank account. However, it is in fact the fraudster's personal account. The card issuer identifies that the credit card was compromised and recalls the full amount of £100,000 from the charity. The charity has unwittingly been involved in money laundering.

Read the rest of this article on the Charity Commission website.