Charity Scams & Money Laundering: A Growing Threat to Our Local Groups
At your Centre for Voluntary Services, our mission is clear: to support, protect, and help voluntary groups thrive across our community. We know that our local charities and voluntary organisations operate with dedication, integrity, and often on limited resources. But unfortunately, these very qualities make them a target for increasingly sophisticated scams—scams that can have devastating consequences.
One urgent issue that has recently come to light involves a money laundering scam currently affecting smaller charities.
The Scam Works Like This:
A fraudster poses as a donor and offers a generous donation—typically something like £5,000. However, when the transfer is made, they ‘accidentally’ deposit double the amount. They then contact the charity, apologising for the mistake and asking for the difference—£5,000—to be returned.
In doing so, the charity has unknowingly accepted criminal money and ‘washed’ it by returning clean funds. That’s money laundering, and even though the charity may be an innocent victim, the legal and reputational fallout can be significant.
Staying alert to these scams is essential, not only to protect an organisation’s finances, but also to help maintain the strong public trust in the voluntary sector and ensure that groups can continue their important work without disruption.
As the local group’s centre of support, we work closely with local government and sector leaders to stay ahead of threats like this and to pass on guidance.
Steps to Prevention:
Hertfordshire County Council has shared practical steps you can take to help protect your organisation and avoid falling victim to this type of scam.
- Be cautious of unsolicited large donations, especially from unknown individuals or organisations
- Always conduct due diligence on donors—particularly for significant or unusual donations
- Don’t be afraid to question or delay transactions if something feels off
- Lastly make sure your trustees and staff know how to recognise red flags
More Help and Advice
You can find detailed guidance from the government on due diligence and verifying donations to help ensure your group is protected here.
If you believe you’ve been targeted by a scam like this, report it immediately via the Action Fraud website.
And remember, you’re not alone. If you need advice or support, contact the Hertfordshire Business Advice Team at
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We are proud to stand with our local groups. We’re in your corner—connected, informed, and ready to help you navigate challenges like this so you can focus on what matters most: making a difference.
