$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
crowdfunding community project fraud
Scammers create crowdfunding campaigns for fake community projects such as parks, memorials, or neighborhood improvements, collect donations, and disappear.
“charity scam”
↑ 142%Key indicators
Usually targetsDonors
Often hitsFreelancers and contractors
Common regionUnited States
Last updated2026-04-04
Estimated impact
$640
median reported loss
Typical range$40 – $4.0K
Recovery rate~15%
Scam breakdown
1
Scammers identify a community need and create a crowdfunding campaign proposing a solution
2
They promote the campaign through local social media groups, gathering support and donations
3
Once sufficient funds are collected, the organizer withdraws the money and the project never materializes
What to do first
Verify that community project campaigns are endorsed by local government or established nonprofits
Related terms
fake community fundraiserneighborhood project scamlocal crowdfunding fraudCharity scamsWebsiteSurgingDonorsLocal community membersSocial media usersFreelancers and contractorsTech workers and developersNonprofit and charity workersUnited StatesUnited KingdomAustraliafake community fundraiserneighborhood project scam
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Daniel, 35, a donors, encountered what appeared to be a legitimate charity scams situation while using Website. Scammers identify a community need and create a crowdfunding campaign proposing a solution
Step 2
What happened next was calculated: They promote the campaign through local social media groups, gathering support and donations
Step 3
The pressure escalated quickly: Once sufficient funds are collected, the organizer withdraws the money and the project never materializes
The outcome
Daniel realized something was wrong when project has no partnership with local government or established community organizations. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Verify that community project campaigns are endorsed by local government or established nonprofits Daniel's experience shows why project has no partnership with local government or established community organizations and campaign organizer has no verifiable identity or history in the community are the clearest early warning signs.
How to identify it
- Project has no partnership with local government or established community organizations
- Campaign organizer has no verifiable identity or history in the community
- No timeline, budget breakdown, or accountability measures are provided for how funds will be used
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Verify that community project campaigns are endorsed by local government or established nonprofits
- ✓Ask for detailed plans, permits, and partnerships before donating to local project campaigns
- ✓Report fraudulent community campaigns to the crowdfunding platform and local law enforcement
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The BBB and crowdfunding platforms report that community project fraud is an emerging category, particularly in areas recovering from disasters or undergoing development
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Verify that community project campaigns are endorsed by local government or established nonprofits
- ✓Ask for detailed plans, permits, and partnerships before donating to local project campaigns
- ✓Report fraudulent community campaigns to the crowdfunding platform and local law enforcement
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The BBB and crowdfunding platforms report that community project fraud is an emerging category, particularly in areas recovering from disasters or undergoing development
BBB Scam Tracker 2025
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Donors, Local community members, Social media users
Geographic concentration
United States, United Kingdom, Australia
Primary channel
Website — Charity scams
Why this group is vulnerable
Donors are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The rapid increase in reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The BBB and crowdfunding platforms report that community project fraud is an emerging category, particularly in areas recovering from disasters or undergoing development
Source notes
- BBB Scam Tracker 2025
Frequently asked questions
Common questions about crowdfunding community project fraud
How does the crowdfunding community project fraud work?+
Scammers identify a community need and create a crowdfunding campaign proposing a solution They promote the campaign through local social media groups, gathering support and donations Once sufficient funds are collected, the organizer withdraws the money and the project never materializes
What are the warning signs of crowdfunding community project fraud?+
Project has no partnership with local government or established community organizations Campaign organizer has no verifiable identity or history in the community No timeline, budget breakdown, or accountability measures are provided for how funds will be used
What should I do if I encounter crowdfunding community project fraud?+
Verify that community project campaigns are endorsed by local government or established nonprofits Ask for detailed plans, permits, and partnerships before donating to local project campaigns Report fraudulent community campaigns to the crowdfunding platform and local law enforcement
Who is most at risk for crowdfunding community project fraud?+
This scam primarily targets Donors, Local community members, Social media users. It is most commonly reported in United States, United Kingdom, Australia and typically appears on Website.
Is crowdfunding community project fraud getting worse?+
crowdfunding community project fraud is currently surging — reports are increasing rapidly. It has been reported across US, UK, AU. Last updated 2026-04-04.
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Help someone avoid this scam.
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