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Don’t Let Chargebacks Limit Your Chance to Make Positive Change: How Nonprofits Can Prevent Online Fraud

Despite attempts by banks to make online transactions safer, as much as 60-70 percent of card fraud still occurs online. And it seems that no sites are sacred. Unscrupulous hackers are increasingly stealing from well-meaning nonprofit organizations, and even running transactions on insecure nonprofit websites to test stolen cards, costing groups thousands of dollars in chargeback fees from fake donations.

Six Signs Your Nonprofit Is Ripe for Fraud


We in the nonprofit sector don’t like the “F” word … fraud, that is.

After all, we’re in the business of doing good, and fraud is just bad and ugly. However, turning a blind eye to the possibility can be even more damaging than the actual deception.

Consider this: Of those who responded to the Association of Certified Fraud Examiners’ 2016 Global Fraud Study, 10.1 percent of victim organizations were nonprofits that reported a median loss of $100,000; 18.7 percent were government agencies that reported a median loss of $109,000.

Is your nonprofit ripe for fraud? If we’re being totally honest, it probably is, particularly if any or all of the following scenarios sound familiar: