There are dozens, if not hundreds of wonderful military charities dedicated to making the lives of servicemembers, veterans, and their family members or survivors, a little brighter. Many veterans have given more than we as a nation could ever rightfully ask. And it’s great to be able to give back to our veteran community and show the we appreciate the sacrifices they have made. Unfortunately,  whenever money is involved the door is open for scammers to try and part you from your hard earned money.

Investigate military charities before giving.

We don’t need to cover all the scams and fraudulent military charities out there. This has been done by many sites, including this example of a man who took almost $2 million in cash as a “retirement” for his work (among other high valued perks) and this person who bilked unsuspecting donors out of over $100 million over seven years.

Our goal is to show you how you can protect yourself when giving to military or veteran charities, and ensure that your intended recipients receive the bulk of your gift.

How to Verify a Military or Veteran Charity is Real

Anyone can make something look good on paper or on the Internet. All you need is an official looking logo and a name that elicits trust. But if you are giving someone money, it’s your duty to know where your money is going. Even if a charity claims to give money to military families or veterans, they may put much more than they give into their own pockets. Here are some ways you can verify a military charity is legitimate before you give them any of your hard earned money.

Are they registered with the state and federal government? All legitimate charities should be registered with the state and federal government. Use a search engine to look for “your state + charity list“. That link will take you to Illinois, where I live. Just change the state to your state and verify the charity is listed with your state attorney general’s office, or other regulatory office (each state has different requirements).

Charities should also be listed as a 501(c)(3) non-profit organization with the government. By law, they must meet certain requirements to be listed as a charity with the IRS.

How much of their money goes to overhead? How much money goes to the mission goal? Legitimate charities aren’t afraid to open their books to the public. They understand that if they are running a true charity, the vast majority of their income will go right out the door to support their cause. There are several third party websites which monitor charities and give them a score based on how much money they spend on their mission compared to how much goes to things like overhead, fundraising, and employees. Here are a few sites to check before ever sending any money to a charity:

• Better Business Bureau’s (BBB) Wise Giving Alliance.
• Charity Navigator.
• Charity Watch.
• GuideStar.

When researching charities on the above sites, be sure to look for a charity rating and see if there is information on how the funds are used.

Beware of unsolicited requests for money. I never give money over the phone. Ever. I always ask the caller for a website where I can research the company or organization before I make any contributions. Any respectable organization will be happy to give you their website, and some will even direct you to locations on the site where you can find information about how they solicit and spend contributions. If an organization doesn’t have a website or tries to avoid giving me the information, I politely decline their solicitation and request to be permanently removed from their calling list.

Avoid the hard sell. Most organizations that do sales over the phone have scripts for everything. They read the pitch and go down their list. If you ask a question, they have a response on their list ready to go. These scripts are tested and they have them down to a science. The only way to win is to be persistent and avoid a hard sell. Don’t ever commit to giving money until you have a chance to review the organization before you give any money.

If you are being solicited in person, ask the solicitor for a brochure or a card so you can further investigate the organization. Again, any good charity will be happy to share information about their organization. They will be just as happy to receive the money tomorrow as they would be to receive it today. Anyone who pushes the hard sale may be trying to hide something.

Never send cash and always request a receipt if you want a tax deduction. Cash is untraceable. It is easily lost or misappropriated (in the wrong hands). Some organizations won’t even accept cash. If you want a tax deduction, you will need to prove that you made the contribution. The easiest way to do this is with a receipt or a credit card transaction.

Never give too much identifying information. Some scams are designed to steal your identity. For example, a person may call you fronting as part of a charitable organization. They may ask you for personal information to verify a donation you gave. never give personal information over the ohone, especially info such as your SSN, DOB, or other personal info. It can be used for identity theft.

Report fraudulent charities. If you believe you have given money to a fraudulent charity, or an organization is trying to scam you, you should report it to your state attorney general office or the Federal Trade Commission. You can also report it to any of the websites mentioned above that track charitable organizations.

Make Sure Your Money Goes to a Good Place

Some of these fraudulent organizations have solicitation down to an art. They know the exact words to say to get the best response. But technology is now good enough that you can put the power in your hands. You control your check book. So take a moment and review the organization before you write a check. Make sure you understand the organizations mission, how much of their money goes to the mission, and that you agree with both of these.

As we mentioned earlier, there are dozens of great charitable organizations that support the military and veteran communities. Here is an Alphabetical List of Community Support Group from OurMilitary.mil, and two organizations we have covered in more depth on our site:

• Cell Phones for Soldiers – provides Cell Phones for soldiers when traveling on deployments.
• Vet Tix – provides event tickets to veterans and active servicemembers.

Do you have a favorite military or veteran charity?

As our financial lives become increasingly digital, we have the freedom to manage money anywhere there’s an Internet connection. Digital money management allows you to get the job done in much less time and to track your cash flow and budget in clever new ways. But making the leap from paper to cyberspace can be dangerous if you don’t know how to protect yourself from identity theft and other cybercrimes.

Here are 8 ways to stay safe from identity theft that don’t cost a dime and can save you a huge amount of headaches and stress:

Identity Theft Protection Tip #1: Minimize What You Carry in Your Wallet

Identity Theft - Are You Safe?

Everyone’s nightmare is having their wallet or purse stolen, but it happens. Be sure you never carry anything that you don’t absolutely, positively have to. That way, if you are robbed the thief won’t score every possible piece of your confidential information.

For starters, never carry your Social Security card or a copy with you. Leave it in a safe place at home or in a safe deposit box at the bank. You only need to present the physical card in a few instances, like when you accept a new job or open a bank account.

Identity Theft Protection Tip #2: Review Your Account Statements

You should review your bank and credit card statements on a weekly basis to make sure there are no fraudulent charges. Criminals can slip in small charges that they hope you’ll miss—don’t give them the satisfaction! Better yet, import your bank and credit account transactions into online or desktop financial software at least once a week so you can check amounts against your receipts and categorize them for budgeting purposes.

Identity Theft Protection Tip #3: Review Your Credit Reports

Don’t forget to review your credit report from each of the three credit bureaus (Equifax, Experian, and TransUnion) at least once at year. It’s free to view or print your entire file at annualcreditreport.com. A good strategy is to space out your requests so you can pull a different report every four months. Review it carefully to make sure all the accounts are yours and that the information is 100% correct.

Identity Theft Protection Tip #4: Send and Receive Less Confidential Mail

Identity thieves love to steal confidential documents from your mail box and they don’t even have to live next door to do it. Having a locking mail box isn’t enough protection; criminals can change your mailing address remotely so your mail goes to their address across the country without you knowing! Stay a step ahead of thieves by going paperless and get as many bills, account statements, and confidential documents as you can sent to your email inbox instead of to your physical mail box.

You can opt out of certain types of junk mail like preapproved credit card and insurance offers by going to OptOutPreScreen.comto have your name removed from direct marketing lists.

Identity Theft Protection Tip #5: Shred Documents with Confidential Information

Since not every financial institution is on the paperless bandwagon yet, be sure to shred any document with confidential information that you don’t need. Another past time of identity thieves is dumpster-diving. Your pre-approved credit card offers, bills, and account statements can be used against you because they contain your name, address, account number, and sometimes even your Social Security number. That’s all a thief needs to open an account in your name and run up a line of credit, for instance. If you make confetti out of your documents, all a dumpster-diver will get is dirty.

Identity Theft Protection Tip #6: Don’t Browse Confidential Sites in Public

Never visit a confidential site, like your bank or investing account from an unsecure location like a coffee shop or library. Thieves hang out where there’s an open Internet connection so they can see where people are browsing and steal their log on information.

Identity Theft Protection Tip #7: Use Complex Account Passwords

Never use simple passwords that a thief could guess, like your birthday, address, or kid’s name. The best passwords are at least eight digits and have a combination of letters, numbers, and symbols. You should change passwords for your financial accounts every few months so a thief who gained access would get locked out.

Identity Theft Protection Tip #8: Be Suspicious When Approached

If you receive an email, letter, or phone call from someone who says they’re from a government agency, bank, credit card company, or any other financial institution, be suspicious. Identity thieves will pose as trusted representatives so they can con you into giving up your confidential information. Always ask for their name, phone number, or email so you can call them back or contact them directly to verify their purpose for contacting you.

Learn More About Identity Theft Prevention

In “6 Simple Tools to Protect Your Privacy” you can listen to an interview I did with an identity theft expert who had to learn about loss the hard way. It cost him a 40-year-old business, $300,000, and almost ruined his marriage and landed him in jail. You won’t want to miss John’s tips about how to avoid becoming the victim of an identity crime too.

If you believe you have been the victim of a cybercrime or just want to learn more, visit the Federal Trade Commission Web site. The government-sponsored site, OnGuardOnline.gov, also gives useful tips about how to secure your computer and your personal information. Knowing simple rules for staying safe and the protections you’re entitled to allow you to manage your finances without ever becoming a crime victim.

I recently had an unauthorized charge on my credit card. I don’t know where it came from or how it got there. And unfortunately, I’m not alone. It seems like everywhere you turn there is a news broadcast or article discussing the rise of credit card fraud, especially on the web. There are a variety of ways that criminals either snatch your credit cards or get access to your number and other personal information in order to make fraudulent purchases and other wise wreak havoc on your credit status – and life.

Unfortunately, it’s all too easy for thieves to steal your credit card information, rack up some charges for a brief period of time, then move on to someone else. And it can happen to anyone, even if your credit card rarely leaves your wallet or purse. In fact, you may only become aware of the problem if you get a call from your credit card company’s fraud department or you receive a statement with unexplainable purchases.

Here are some tips to follow if you find out that your credit card number has been stolen.

What Do You Do If Your Credit Card Number Is Stolen?

Report the Issue Immediately

If your credit card number has been stolen remember that you have options to address the problem. First, you are protected under federal law as long as you report the issue as soon as you discover a problem. According to the FTC, your liability is limited to $50 if your card is stolen, and no liability if only your credit card number is stolen, provided you report the problem right away. Keep in mind that you may be liable for all unlawful charges if you don’t report the theft in a timely manner. (Rules for stolen debit card numbers are different).

After you discover the theft, call your credit card issuer immediately. Request that they suspend the card, halting any further transactions so they can’t be processed. This measure can be accomplished in seconds. Your provider will be the one to contact the law enforcement authorities to give them all of the relevant information. Then they should issue you a new credit card shortly.

Trace your credit card use

Next, you want to try and determine how your credit card number was stolen – this will be helpful when reporting the issue to your credit card company. When was the last time you used your card? Was it online or in person? Did you look closely at the receipt you signed?

Unfortunately, thieves are becoming more creative when stealing credit card information – you don’t have to lose your purse or wallet to become a victim of credit card theft. Two of the most difficult credit cards scams to avoid are credit card skimming and RFID theft.

Credit card skimming is when a thief runs your credit card through a small skimmer to record your credit card number and other information that is held on the magnetic strop on your card. It can happen in the blink of an eye and is very difficult to prevent. This can happen when you pay for a meal at a restaurant, or when a merchant slides your card under the counter or through a skimmer when you aren’t working.

RFID Skimming is a relatively new form of credit card theft, which occurs when thieves use a radio frequency reader to steal your credit card information. The scary part is that they can do this while your credit card remains in your purse or wallet. Not all credit cards have RFID technology, but there are a growing number of cards which do. The following video shows how thieves steal your credit card information with RFID technology and how you can protect yourself.

Other methods of stealing credit card information

Your credit card information can also be stolen online. Only use your credit card on trusted websites, and if possible, never store your credit card information online. It’s convenient and can save you time if you use a merchant frequently, but it is also one more place where you can have your information stolen.

Some identity thieves also regularly steal mail – they drive around and take mail from unprotected mailboxes and search for anything they might find valuable – including newly issued credit cards and other financial information. Read more identity theft facts and trivia.

Credit card issuers are on your side fighting credit card fraud

Credit card companies, merchants, banks and others are fighting back with new security measures to stop credit card fraud. In many cases, the more complex procedures are helping to reduce the instances of fraudulent credit card use, but this doesn’t address concerns once your card’s number has been snatched.

My story has a happy ending. I contacted my credit card company right away about the unauthorized charge and they filed a dispute against the charge and alerted their fraud department to begin an investigation on this charge. Thankfully, I won’t be out anything, thanks to the federal laws in place and the great customer service at Chase (I use the Chase Freedom® Visa, which is a great cash back card).

The occurrences of identity theft continue to grow despite the fact that the average consumer is becoming more educated about the frequency of this crime. Identity theft occurs when someone other than yourself uses your identity to open lines of credit and various utilities. If you have been the victim of identity theft, by the time you realize what has happened, the damage is usually done. This is one of the reasons why consumers are encouraged to review their credit report at least once per year as well as take actions to ensure their identity is protected at all times. Here are tips to help you protect your identity from the would-be thieves who want to catch a free ride using your name.

How to Protect yourself From Identity Theft

Shredding documents is a must!

Keep private information private. This sounds like a simple concept, yet surprisingly many people fail to protect their information through carelessness or simple ignorance. Identity thieves can collect information in day-to-day situations that most people do not think twice about. Protect any information that contains your full name, social security number, address and account numbers. Documents do not have to have all of this information for your identity to be stolen, therefore it is important to shred or properly secure any paperwork that has all or part of this information. You should also consider using a fireproof safe or safety deposit box for securing important documents.

Understand identity theft scams. The Internet can be a great tool when used as intended, however it is also a great way for identity thieves to target unsuspecting victims. The most common scams used to steal a person’s identity are relatively easy to spot, if you know what to look for. Unsolicited emails that look similar to that of your bank, credit card company or other financial institution, asking for personal information should always be considered fraudulent.

No legitimate company will contact you via email requesting this information. Do not reply to this type of correspondence or even open any attachments from the sender as they may include spyware or malware that infects your computer and can be used to steal your information.

Credit monitoring services. There are services available, that for a fee will monitor your credit report and alert you to any suspicious activity that may indicate someone is attempting to open accounts or obtain credit in your name.

There are several companies which offer credit monitoring at reasonable prices. One example is IDENTITY GUARD®, which offers a free credit score, credit reports, credit monitoring service, and other great features at an affordable price. We also list a few companies that give you a free credit score. You can check your credit profile with these companies to ensure your credit history is correct.

The key to preventing identity theft

The most important aspect of protecting yourself from identity theft is paying attention to where and with whom you share personal information. This can be as simple as making sure you destroy documents before placing them in the trash to paying attention to the information you post on social media sites. Name, birth date and address are a starting point for identity thieves, therefore any time you share this information or other confidential information, you are putting yourself at risk of identity theft.

In addition to being proactive in the protection of your personal information, you must also remain vigilant by addressing inaccurate or suspicious activity that may appear on your credit report or credit card statements. Should an identity thief gain access to your information, action must be taken immediately to mitigate the damage and protect yourself from further attacks.

The Cash For Clunkers bill was recently passed by Congress, and is currently waiting to be signed into law by President Obama. The Cash For Clunkers Bill, officially called the Car Allowance Rebate System (CARS), gives consumers the opportunity to trade in old vehicles for a voucher to be used for a new car.

Understanding the  Car Allowance Rebate System (CARS)

Here is how the Car Allowance Rebate System (CARS) works: Consumers need to turn in an old vehicle to receive a $3500 to $4500 voucher that can only be used on a new car. The voucher has no cash value and cannot be transferred to another individual. The car will be destroyed, so it is important to note that trade-in values should be less than the voucher amount, or it will not be worth trading the car in for the voucher. Here is some more information about the Cash for Clunkers Bill:

• Only purchase or lease of new vehicles qualify.
• Trade-in vehicles must be registered and insured continuously for the full year preceding the trade-in.
• You don’t need a voucher, dealers will apply a credit at purchase.
• Program runs through Nov 1, 2009 or when the funds are exhausted, whichever comes first.

Beware of Cash For Clunkers Scams

Thieves and con artists are already taking advantage of the confusion surrounding the Cash for Clunkers Bill. It is important to understand how the Cash for Clunkers Bill works to avoid the scams that are already taking place. For official Cash for Clunkers information, visit the official site at http://www.cars.gov/, or the Frequently Asked Questions.

To avoid Cash for Clunkers scams you should also follow these tips:

• Do not give your personal information on websites. The Cash For Clunkers vouchers can only be processed by authorized dealerships. Do not submit information for a voucher online.
• Do not pay to process a voucher. Dealerships will process the vouchers for free.
• Look at previous economic stimulus scams for examples of what to avoid. There were how to avoid Stimulus Check and Government Grant Fraud.
• Use online safety tips. Here are some tips to avoid identity theft, and some more tips on preventing identity theft.

If it sounds too good to be true – it probably is. Common scams include:

• Websites alleging to “pre-authorize” applications.
• Websites offering to give you cash for your voucher (vouchers are non-transferable).
• Websites that state they are the “official” Cash for Clunkers or Car Allowance Rebate System (CARS) website. The official site is http://www.cars.gov/.

The best bet is to visit the official site before giving away any information.

By now, most people are aware that Congress did not include a second economic stimulus check for everyone when passed the second economic stimulus program, called the American Recovery & Reinvestment Plan. Instead of a second stimulus check, the government included the Making Work Pay tax credit, which reduces the amount of taxes withheld from each paycheck. While it’s not the same thing as giving everyone a check, it does put a little bit more money in people’s pockets each pay period. *There is a $250 Stimulus Check for disabled veterans, social security recipients, and other eligible retirees.

No stimulus checks and no stimulus grants in 2009

Unfortunately, scammers and con artists are preying on the confusion and are leading people to believe that there is free government money for anyone that asks for it. And, of course they will tell you how… all you need to do is pay them a small fee via credit card (which they will continue to charge on a monthly basis and make it nearly impossible to cancel the payments). There are no economic stimulus grants for individuals – these are fraudulent and you should avoid them!

How to find a government grant

There are hundreds of grants available, and for a variety of purposes. But, I would caution you to beware of websites selling “secret government grants” and similar programs and get rich schemes. Most of these are nothing but scams. There is nothing available that you won’t be able to find at a government website or in person.

If you wish to apply for a government grant, the best place to go is to a local, state, or government agency and inquire in person about which grants are available. You can also visit the official website of the agency. A good thing to do is look for a website that ends in .gov instead of .com (government sites usually end in .gov).

Protect your wallet and your identity

Always be cautious before giving out any personal of financial information in person, over the phone, or on the internet. There are many people out there looking to steal your money or your identity and you want to avoid that at all costs! Here are some tips to avoid identity theft, and some more tips on preventing identity theft.

More about stimulus check scams and similar fraud:

• The Government Is NOT Giving You a Stimulus Check or Grant.
• Beware Stimulus Check Scams.
• What to Do About a Lost or Stolen Stimulus Check.

Identity theft is a serious crime that can destroy your finances and ruin your life. Identity theft can ruin your credit score, destroy your ability to take out a loan, or even get you arrested for crimes you did not commit.

There are three methods to protect against identity theft and the damages it can do to your finances and your freedom:

Deter Identity Theft

Prevention is the most effective step to avoid becoming an identity theft victim. Here are some tips on how to deter identity thieves from making you an easy mark.

• Shred, burn, or otherwise destroy your financial documents when you discard them.
• Protect your Social Security Number. Don’t carry your SSN in your wallet, or give it to people who do not have an official need to know.
• Use strong passwords with big and small letters, numbers, and symbols. Avoid using passwords based on names, dates, or anything else easy to guess.
• Secure your financial data within your house. Don’t leave financial data, account information, Social Security Numbers, or other sensitive personal or financial information where thieves or other people can take advantage of them.
• Don’t give out personal information over the phone or internet.
• Secure your computer with anti-virus software, firewalls, and anti-spyware.
• Don’t click on links sent in unsolicited e-mails; they may be malicious! Instead, type the website location directly into the browser.

Detect Identity Theft

If you are a victim of identity theft, the more quickly you discover the crime, the better chance you have of limiting the damages. Be aware for these signs:

• Bills not arriving as expected.
• Unexpected bills for items you did not purchase, or for accounts you do not own.
• Calls or letters from creditors or bill collectors for items you did not purchase or accounts you did not open.
• Denials of credit for no reason.

As part of your financial routine, you should make it a habit to review your financial statements on a monthly basis. You can also get one free credit report every year. Your credit report will contain information about which accounts you own, your credit history, and other information. Make sure the information on your credit report matches what you know to be true. Be on the lookout for changes that you did not make.

If you notice these signs, you need to defend yourself against identity theft!

Defend Against Identity Theft

As soon as you suspect ID theft has occurred, you should defend against it!

• Place fraud alerts on your credit reports
• Review your credit reports carefully
• Close accounts that have been tampered with, or that you suspect may have been accessed fraudulently
• File a police report. Most creditors will want proof that a crime has been committed.
• Report the theft to the Federal Trade Commission.

I hope you are never a victim of Identity theft. If you are, quick action is the best way to diminish the effects. Deter. Detect. Defend. Your financial future is worth it.

Reference: FTC – ID Theft page.