Hawaiʻi nonprofits are being targeted by a scam involving fake donation checks. Scammers send large checks and later ask for a refund before the checks are found to be fake. According to KHON2, some of the names used by scammers include “Leonardo Kotlar” and the “Give To Help Foundation.”
The scam is affecting both Hawaiʻi and the U.S. mainland. The state attorney general told Hawaii News Now that scammers send fake donation checks to nonprofits and then ask for refunds. Nonprofits receive what looks like donations but end up losing money.
Eunice Park, Charities Program Administrator with the Department’s Tax and Charities Division, said, "These scams are designed to exploit the goodwill of nonprofits and the community they serve," and added, "We urge all nonprofits to stay vigilant, verify all donations before allocating resources and report suspicious activity," as reported by Spectrum Local News. The Department of the Attorney General asked Hawaiʻi’s nonprofit leaders to review and strengthen financial controls. Organizations are advised to verify new or unknown donors, confirm checks come from legitimate banks, wait for checks to clear before using the funds, and require multiple approvals for outgoing transactions.
Nonprofits in Hawaiʻi with questionable donations are encouraged to report them to the Department of the Attorney General’s Tax & Charities Division by calling 808-586-1480 or emailing [email protected]. Organizations should act promptly and follow financial procedures to protect against scams.
