NAB senior leaders discuss the economy and why there’s good news ahead for business.
In what’s recently been coined “Robin Hood fraud”, criminals are now using stolen credit cards to make donations to charitable organisations. Zoe Fairfull-Smith, NAB’s Manager of Anti-Crime Education, shares five ways charities can better protect themselves from fraud.
It’s the generosity of millions of Australians that plays a critical role in a charity’s ability to continue their mission and support the community.
However, in what’s recently been coined “Robin Hood fraud”, criminals are now using stolen credit cards to make donations to charitable organisations.
“One scenario involves a criminal making a large donation, like $1000,” Zoe Fairfull-Smith, NAB’s Manager of Anti-Crime Education. “Once received, they call the charity to explain how they only intended to donate $100, and to request a partial refund to be delivered using a different payment method – one that the criminal can access.”
It’s typically after a criminal has successfully made small payments of $1 or $2 that they really start to target charities. “Once they know the card is active, they often make increasingly larger payments that wind up exhausting the credit card’s limit,” says Fairfull-Smith.
For most businesses, it’s common practice – if not policy – for their staff to only process a refund via the same payment method the original amount was received. But for some charities, the lack of internal processes and inadequate employee and volunteer training can result in costly mistakes.
“Charities are often victims of fraud as they don’t always have the capacity or capability to identify and prevent such persistent attacks from criminals,” says Fairfull-Smith. “Depending on the scope, the impact of fraud can lead to card scheme issues, the loss of charity funds, plus the administrative burden of rectifying the issues which can place significant strain on their already limited resources.”
If you’re a NAB customer and have concerns relating to fraudulent activity, speak with your Banker, contact our Customer Contact Centre on 13 22 65 or visit your local branch.
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