Fraudulent telemarketers are posing as representatives from the American Red Cross and are gathering donations and credit card numbers from unsuspecting consumers, according to a spokesperson for the organization.
In reaction to just such scams, the American Red Cross has ceased outbound cold calls and the Direct Marketing Association yesterday requested that all nonprofit organizations — both members and nonmembers — halt prospective fundraising calls to potential donors unless a prior relationship exists.
The DMA suggested holding such calls until at least the end of the month.
The American Red Cross conducted a limited telemarketing campaign on Sept. 13 to donors who had previously responded via phone. “We stopped it because there was generally a lot of confusion out in the pubic about who to trust,” said Heather Overstreet, a spokesperson for the organization.
And while DMA members may comply with the request to hold cold calls, the scammers will still be on the hunt for the unsuspecting donor. To counter that, both the DMA and the American Red Cross are counting on the main stream media to continue to get the word out to watch out for fraudulent telemarketing calls and other scams as nonprofits are asked to hold calls at a time when the American public is quick to open its wallets and purses.
The DMA has issued a release to the national press encouraging them to relay the message that DMA member nonprofit organizations will not be calling consumers. The DMA has more than 300 non-profit organizations among its members.
“We’re trying to get the consumer press to say, ‘Hey if you get a call and it’s from a charity that you have not done business with then it’s probably not legitimate, be suspicious,'” DMA president H. Robert Wientzen said yesterday.
Wientzen said that the action to stop cold calls was prompted by reports from various legislators who received complaints from consumer constituents about telemarketing scams tied to various charities.
“There are too many reported scams and this is bringing negative publicity onto the industry which we think is harmful,” Wientzen said.
The American Red Cross however has not stopped fundraising efforts at a time when donations continue to pour in.
The organization began a direct mail campaign to 8.5 million U.S. prospects and donors Sept. 14 that continues through Sept. 21. The campaign asks for donations for the disaster relief fund for the recent terrorist attacks as well as other disasters, Overstreet said.
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