NPOs warned of latest ‘COVID-19’ scam, here’s how it plays out
The Department of Social Development has warned NPOs to remain vigilant about a scam targeting its sector specifically.
The Department of Social Development is warning members of the public, and the Non-Profit Organisation (NPO) sector, in particular, to remain vigilant of a COVID-19 scam.
The scam purports to “accredit and convert NPO certificate to NGO (Non-Governmental Organisation) certificate to qualify for international funding worth millions of rands,” the statement read.
To date, a number of NPOs registered in terms of the NPO Act, have fallen prey to this elaborate scam which seeks to fraudulently gain access to organisations’ finances.
Here’s how the scam works
According to a statement from the department of social development, the scammers prey on NPOs desperate for funding and charge them R 1 999 for the conversion of their certificates to NGO certificates.
They have re-created a fake NGO certificate in which they ask registered NPOs to submit ID copies of members, their proof of residence, tax exemption letter, bank account, bank confirmation letter and a photo of the NPO Director.