Answer By law4u team
With the rise of online crowdfunding and digital donation platforms, consumers are increasingly exposed to the risk of fraudulent online fundraising activities. These fraudulent activities can range from fake crowdfunding campaigns for medical treatments, disaster relief, or personal causes to deceptive charity appeals that take advantage of people's goodwill. Online fundraising frauds have become a major concern due to the anonymity and ease of access provided by the internet.
Under consumer protection laws, individuals who fall victim to these scams are entitled to seek remedies and justice. The Consumer Protection Act, 2019 in India, along with other relevant laws, provides mechanisms to address fraudulent online activities.
Steps to File Complaints Against Fraudulent Online Fundraising
1. Verify the Authenticity of the Fundraiser
Before filing a complaint, ensure that the fundraising campaign or appeal is indeed fraudulent. Sometimes, the lack of transparency or unclear details may seem suspicious but may not necessarily be fraudulent. Steps to verify:
- Check the fundraiser’s legitimacy: Research the cause or charity through independent websites or news reports.
- Look for red flags: Such as poor grammar, exaggerated emotional appeals, unclear use of funds, or absence of verifiable information (e.g., legitimate medical bills or charity registration details).
- Check the platform: Verify if the campaign is listed on a reliable platform like GoFundMe, Ketto, Milaap, or Fundraiser. Most established platforms provide fraud prevention mechanisms.
2. Contact the Platform Hosting the Fundraiser
If you believe you have encountered a fraudulent crowdfunding campaign, report the issue to the platform where the campaign is hosted. Major platforms often have specific reporting procedures to flag fraudulent campaigns.
Provide details: Provide a detailed report of why you believe the fundraising activity is fraudulent. Attach any relevant evidence (such as screenshots, links, or communication with the fundraisers).
Request for removal: Ask the platform to investigate the fundraiser, and remove it if found to be fraudulent.
3. File a Complaint with the Consumer Forum (India)
Under the Consumer Protection Act, 2019, consumers can file complaints regarding fraudulent online activities, including deceptive fundraising campaigns, for unfair trade practices.
Jurisdiction: Consumers can file a complaint in the District Consumer Forum if the amount involved is less than ₹20 lakh, or in the State Consumer Forum or National Consumer Forum for higher amounts.
Complaint Process:
- Draft a formal complaint stating the fraudulent nature of the fundraising campaign, how it led to a financial loss or emotional harm, and the relief you seek.
- Attach relevant documents such as the details of the fraudulent fundraiser, communication records, and evidence of financial loss.
- Submit the complaint to the appropriate Consumer Forum with a nominal fee for processing.
4. Report the Fraud to Law Enforcement (Cyber Crime)
Online fundraising fraud is a cybercrime, and consumers can report such frauds to law enforcement agencies.
File a complaint with local police: You can file an FIR (First Information Report) against the perpetrators of fraudulent fundraising schemes.
National Cyber Crime Reporting Portal: In India, the National Cyber Crime Reporting Portal (www.cybercrime.gov.in) allows users to file complaints related to online fraud, including fraudulent fundraising activities.
Provide full details of the fraudulent campaign, including the URL, screenshots, any communications exchanged, and evidence of financial transactions. The cybercrime unit will investigate the matter and take appropriate legal actions.
5. File a Complaint with the Charity Regulatory Authorities
If the fraudulent fundraiser pretends to be a charity, you can also report the incident to the relevant charity regulation authorities.
- India: Report fraudulent charitable fundraising to the Ministry of Home Affairs or the Registrar of Societies (for NGOs and charitable trusts). Charities operating online must be registered under appropriate laws like the Foreign Contribution Regulation Act (FCRA).
- USA: Report to Federal Trade Commission (FTC) and the Better Business Bureau (BBB), which monitor charity frauds.
6. Report to Online Payment Platforms
If money has been transferred via online payment platforms (e.g., PayPal, Google Pay, PhonePe, Razorpay), report the fraud to them immediately. Most of these platforms have fraud detection systems and can assist in the reversal of payments in certain cases.
Provide transaction details: Attach proof of payment and details of the fraudulent fundraiser.
Request chargeback: If possible, you may be able to request a chargeback for the payment made to a fraudulent fundraising campaign.
7. File a Complaint with the Advertising Standards Council of India (ASCI)
If the fraudulent fundraising campaign used misleading or deceptive advertising practices, consumers can report this to the Advertising Standards Council of India (ASCI). ASCI monitors and regulates deceptive advertising and unethical practices in India.
File a complaint with ASCI if the fraudulent fundraiser made false claims, especially if it targeted people for donations through misleading ads.
8. Raise Awareness and Share Your Experience
After filing a formal complaint, share your experience on social media or consumer forums to raise awareness about fraudulent online fundraising schemes. This can help others avoid falling victim to the same scam.
Example
Scenario: Suppose a person sees an online crowdfunding campaign for medical treatment for a child with a life-threatening condition. The fundraiser claims to raise money for urgent surgery. The victim donates a significant amount but later finds out that the child’s medical condition was fabricated, and the campaign was fraudulent.
Steps taken by the consumer:
- Verify the authenticity: The consumer tries to verify the medical condition and the legitimacy of the campaign but finds conflicting information and a lack of transparency.
- Contact the platform: The consumer contacts the crowdfunding platform (e.g., GoFundMe) to report the fraud, providing screenshots of the campaign and the discrepancies found.
- File a complaint with NCH: The consumer files a complaint with the National Consumer Helpline (India) regarding the fraudulent nature of the campaign.
- File a cybercrime report: The consumer files a report with the National Cyber Crime Reporting Portal to report the online fraud.
- Approach the District Consumer Forum: The consumer files a complaint with the District Consumer Forum for a refund and compensation under the Consumer Protection Act, citing unfair trade practices and fraud.
Conclusion
Fraudulent online fundraising activities are a growing concern, and consumers have several avenues to seek redress. They can contact the fundraising platform, file complaints with consumer forums, cybercrime units, and charity regulators, and report the fraud to payment platforms for potential refunds. By taking these steps, victims can protect themselves from further harm and help curb fraudulent online activities.
