WestStar is alerting our community to a growing fraud scheme targeting nonprofit organizations.
Fraudsters are mailing counterfeit checks to nonprofits disguised as charitable “donations.” Shortly after the check is deposited, the sender contacts the organization requesting that a portion of the funds be returned. The explanation is often unusual, urgent, or emotionally persuasive.
The original check later returns as fraudulent. Any funds that were refunded or forwarded are lost, leaving the nonprofit responsible for the loss.
How the Scam Works
- A nonprofit receives an unsolicited donation check.
- The organization deposits the check.
- The sender requests a partial refund or asks that funds be forwarded elsewhere.
- The original check is returned as counterfeit.
- The nonprofit absorbs the financial loss.
Warning Signs to Watch For
- Unsolicited donation checks from unknown individuals or organizations
- Requests to return or forward a portion of the funds
- Pressure to act quickly
- Unusual or inconsistent explanations
How to Protect Your Organization
- Do not return or forward funds from a check that has not fully cleared.
- Verify the legitimacy of unexpected donations before taking any action.
- Contact your banker immediately if you suspect fraud.
- Train staff and volunteers to recognize red flags.
WestStar is committed to protecting the organizations that strengthen our community. If your nonprofit receives a suspicious donation or refund request, contact your local WestStar branch or our Client Service Center at 915.532.1000 (El Paso), 575.323.6040 (Las Cruces) before taking action.
Together, we can help protect the Borderplex nonprofit community from fraud.
