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Law firm issues warning over fraudulent crowdfunding pages

A Gold Coast law firm has sounded the alarm over recent scams occurring in the state involving fake crowdfunding pages.

user iconEmma Musgrave 07 November 2018 SME Law
Crowdfunding
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Parker Simmonds Solicitors & Lawyers says it has seen a rise in fraudulent crowdfunding pages, whereby people are using them to solicit money for fake medical treatments.

The firm said a recent example was where a Townsville woman was charged with fraud for faking cancer to raise $55,000 from GoFundMe donors. The woman claimed she was battling terminal ovarian cancer, going as far as to post photographs of her shaved head, bandaged body and oxygen masks.

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Parker Simmonds Solicitors & Lawyers litigation director Bruce Simmonds said the example is just one of many, with crowdfunding becoming a common feature for people trying to nab money.

“Sadly not all of the appeals [on crowdfunding pages] are genuine and she’s not the first – so a healthy dose of caution is now needed as fraudsters see opportunities to play on the community’s emotions,” Mr Simmonds said.

“Crowd funding can be a useful aid to people genuinely in need of assistance if they cannot pay for something themselves, but unfortunately it is now being used by fraudsters too.

“People who run a fake GoFundMe page to defraud the honest donors need to realise they will be found out and prosecuted.

“For the public, a strong dose of caution is advised if you see one of these pages.”

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