What are the procedures for filing complaints against fraudulent online fundraising?

Online fundraising platforms have made it easier for individuals, causes, and charities to raise money from the public. However, the rise of crowdfunding and online charity campaigns has also led to an increase in fraudulent fundraising activities. Fraudsters often create fake campaigns, posing as individuals or causes in need, to steal donations. Consumers who fall victim to such scams can file complaints and seek redress under laws such as the Consumer Protection Act, 2019 and Cybercrime Laws. Understanding the procedures for filing complaints can help victims take action against fraudulent fundraisers.

Steps to File Complaints Against Fraudulent Online Fundraising

Verify the Fundraising Campaign

• Before making any complaint, check the legitimacy of the campaign. Many crowdfunding platforms, such as GoFundMe, Ketto, and Milaap, have verification processes in place, such as identity checks for the campaign organizer. Review the details of the campaign and look for red flags such as:
  • Unclear purpose for fundraising.
  • Fake or generic images.
  • Unverifiable story or lack of specific details about the recipient or cause.
  • Urgent appeals or too good to be true promises.
• If you have already donated to a campaign that appears fraudulent, proceed with the following steps.

Contact the Fundraising Platform

• The first step to take is to reach out to the fundraising platform (such as GoFundMe, Ketto, or Milaap) where the campaign was hosted. Most reputable platforms have built-in mechanisms for reporting fraudulent campaigns and can investigate the matter.
• Provide the platform with the following details:
  • The campaign name and link.
  • Evidence of fraud, such as misleading descriptions or fake identity claims.
  • Details of your donation (receipt, transaction number, etc.).
• The platform should investigate the issue and, if necessary, issue a refund or remove the campaign.

File a Complaint with the National Consumer Helpline (NCH)

• If the platform does not resolve the issue satisfactorily, you can escalate the matter to the National Consumer Helpline (NCH). The NCH can intervene in matters related to fraudulent transactions and deficient services.
• Visit the NCH website (consumerhelpline.gov.in) or call 1800-11-4000 to file your complaint.
• When filing the complaint, provide all necessary documentation, such as:
  • Proof of donation (receipts, bank statements).
  • Details of the fraudulent campaign.
  • Any communication from the fundraising platform or campaign organizer.
• The NCH will try to mediate between you and the service provider to resolve the issue.

Report the Fraud to Cybercrime Authorities

• Since fraudulent online fundraising often involves cybercrime, you should report the incident to cybercrime authorities. In India, this can be done through the Cybercrime Portal (cybercrime.gov.in) or by filing a report with your local police station.
• Cybercrime complaints can include:
  • Fraudulent websites or platforms that misrepresent fundraising campaigns.
  • Fake identities or misuse of personal data.
  • Phishing attacks associated with fraudulent fundraising.
• The authorities will investigate and, if necessary, take action against the fraudster.

Approach the Consumer Forum

• If the fraudulent campaign involved significant financial loss or emotional distress, you can approach a Consumer Forum to seek compensation under the Consumer Protection Act, 2019.
• You can file a complaint in:
  • District Consumer Forum: For claims up to ₹20 lakh.
  • State Consumer Forum: For claims between ₹20 lakh and ₹1 crore.
  • National Consumer Forum (NCDRC): For claims above ₹1 crore.
• The forum can direct the platform to refund the donation, award compensation for mental distress, and take action against the fraudulent campaign organizers.

Report to the Advertising Standards Council of India (ASCI)

• If the fraudulent campaign involved misleading advertising (e.g., fake claims made through social media ads or digital marketing), you can report the incident to the Advertising Standards Council of India (ASCI), which ensures advertisements are truthful and non-deceptive.
• ASCI can investigate whether the campaign's promotional activities violated advertising guidelines and direct the platform to remove misleading ads.

File a Complaint with the Ministry of Information Technology (MeitY)

• If the fraudulent campaign involved online fraud or illegal financial transactions, you can also report the incident to the Ministry of Electronics and Information Technology (MeitY), which handles cybersecurity-related issues in India.

Laws and Regulations Protecting Consumers in Fraudulent Online Fundraising

Consumer Protection Act, 2019

• Section 2(47): Defines deficiency in service and unfair trade practices, which apply to deceptive or fraudulent online fundraising activities.
• Section 2(9): Also defines unfair trade practices, including fraud and false advertising. Consumers who fall victim to fraudulent campaigns can file complaints and seek redress under this act.
• The Consumer Protection (E-Commerce) Rules, 2020 mandate that online platforms disclose accurate information about sellers and campaigns, ensuring transparency and protection for consumers.

Indian Penal Code (IPC)

• Section 420 (Cheating): Fraudulent fundraising often falls under cheating, where fraudsters deceive individuals into donating money through misrepresentation or false pretenses.
• Section 468 (Forgery): If fraudulent online fundraisers use forged documents or fake identities to collect donations, they can be charged with forgery under this section.
• Section 66C (Identity Theft): If a fraudster uses someone else’s identity or details to create a fraudulent campaign, they can be charged under this section for identity theft.

Cybercrime Laws

• Section 66D of the Information Technology Act, 2000: Deals with cyber fraud and online misrepresentation, including fraudulent fundraising schemes that take place over the internet. The accused can face imprisonment and fines for engaging in such fraudulent activities.

Advertising Standards Council of India (ASCI)

• ASCI regulates advertisements and ensures that digital ads for online campaigns are truthful and non-deceptive. If the fundraising campaign violated advertising standards, consumers can file a complaint with ASCI for investigation and removal of misleading content.

Example of Fraudulent Online Fundraising Complaint

Scenario:

Anjali came across a crowdfunding campaign on a popular platform that claimed to raise funds for a terminally ill child in need of urgent medical treatment. After donating ₹10,000, she later discovered that the campaign was fake, and the money was being diverted to a fraudulent account.

Steps Anjali Should Take:

• Contact the Platform: Anjali should immediately report the campaign to the crowdfunding platform, requesting a refund and reporting the fraudulent activity.
• File a Complaint with NCH: If the platform does not take action, Anjali can file a complaint with the National Consumer Helpline for further assistance.
• Report to Cybercrime: Anjali should file a cybercrime complaint through the Cybercrime Portal and local authorities.
• Approach Consumer Forum: If she faces difficulties in getting a refund, Anjali can approach the consumer forum for compensation and take legal action against the fraudster.

Conclusion

Consumers who fall victim to fraudulent online fundraising campaigns have several avenues for redressal. They can start by contacting the platform, filing complaints with the National Consumer Helpline, reporting to cybercrime authorities, and approaching consumer forums for compensation. The Consumer Protection Act, 2019, Cybercrime Laws, and E-Commerce Rules provide legal protections and avenues to combat online fundraising fraud. By following the proper procedure, consumers can help stop fraudsters and hold them accountable, ensuring a safer online donation environment.