Scammers Target Dyslexia Center of Austin with Fake Check Scheme
The Dyslexia Center of Austin (DCA) recently found itself at the center of a sophisticated scam that almost cost the organization $95,000. What initially seemed like a generous donation from a supposed donor turned out to be a cautionary tale, shedding light on the prevalence of fraudulent check schemes targeting non-profits.
Kelly O’Mullan, the executive director of DCA, expressed shock at the elaborate nature of the scam. The organization received a cashier’s check for $95,000 from a donor claiming to be from New York state. O’Mullan described the moment they received the check as a surreal experience, as it was the largest donation ever received by the center.
The scam began with an email from the supposed donor expressing a desire to make a significant contribution to the non-profit. Following the email, the check was sent via FedEx and promptly deposited by DCA. The donor then reached out via phone, sharing a heartbreaking story about his son who had recently passed away after struggling with dyslexia.
However, the situation took a sinister turn when the donor contacted DCA over the weekend, claiming that there had been an error in the check amount and requesting a partial refund. The donor instructed DCA to keep $50,000 of the total amount. Fortunately, the bank was able to detect the fraud before any funds were transferred.
The Federal Trade Commission (FTC) has warned about the increasing prevalence of scams involving fake checks. Scammers exploit the two-day period during which banks must make deposited funds available by sending counterfeit checks and pressuring recipients to return a portion of the money. Victims end up losing the amount they returned, as well as the money owed to the bank.
O’Mullan emphasized the importance of sharing DCA’s story to prevent others from falling victim to similar scams. The organization reported the incident to the Austin police, and the FTC advises victims to contact the state attorney general to file an official complaint.
Recognizing and Avoiding Fraudulent Check Schemes
The DCA’s experience serves as a cautionary tale for individuals and organizations alike, highlighting the need to remain vigilant against fraudulent schemes. Here are some tips to recognize and avoid falling victim to fake check scams:
1. Verify the Source: Before accepting any large donations or funds, conduct thorough research on the donor’s identity and background. Beware of unsolicited offers and requests for refunds, especially if they seem too good to be true.
2. Confirm Funds with the Bank: If you receive a check from an unfamiliar source, contact the issuing bank directly to verify the authenticity of the funds. Do not rely solely on the appearance or apparent legitimacy of the check.
3. Educate Staff and Volunteers: Train your team members on how to identify potential scams and report suspicious activities. Encourage open communication and transparency within the organization to prevent fraudulent incidents.
By staying informed and cautious, individuals and organizations can protect themselves from falling prey to fraudulent check schemes and other financial scams.
Impact on Dyslexia Center of Austin and the Community
The attempted scam on the Dyslexia Center of Austin not only posed a financial risk but also highlighted the vulnerability of non-profit organizations to fraudulent activities. As a vital resource for individuals with dyslexia in the community, DCA plays a crucial role in providing support and educational opportunities for those in need.
The incident serves as a reminder of the challenges faced by non-profits in navigating the complex landscape of fundraising and donor relationships. While acts of generosity and philanthropy are essential for the sustainability of organizations like DCA, they must also exercise caution and diligence to protect themselves from potential scams.
Despite the close call with the fraudulent check scheme, DCA remains committed to its mission of empowering students with dyslexia to thrive. O’Mullan expressed gratitude for the swift action taken by their bank and emphasized the importance of maintaining focus on their core goals amidst external challenges.
In conclusion, the incident involving the Dyslexia Center of Austin underscores the need for increased awareness and vigilance in dealing with potential scams targeting non-profits. By sharing their story and raising awareness about the prevalence of fraudulent check schemes, organizations like DCA can help prevent others from falling victim to similar scams. Through education, communication, and collaboration, the community can work together to combat financial fraud and protect the integrity of charitable organizations.