RIP-OFF ALERT: California is cracking down on bogus telemarketing firms that seek donations to help police, firefighters and veterans, but then pocket the money themselves.

This kind of rip-off is one of the oldest in the book. It can be found all across the country, especially as we lead into the Christmas season and people feel more generous.

The 17 telemarketing organizations being targeted by the Golden State have completely legit-sounding names, but Clark has decided not to name them on air.

One of the telemarketing operations in question collected $30 million from people across the country. The money was intended to buy bullet-proof vests for police and provide funds to surviving families of slain cops.

So how much actually went to that purpose? Zero dollars. It was essentially stolen under false pretense.

Another group supposedly collecting for disabled firefighters pocketed 98 cents out of every dollar. Only 2 cents on average went to the firefighters!

The "best" group out of the 17 (and we use that term loosely) managed to send a whole dime on a dollar to the intended recipients.

Here's the takeaway for you: Do not give money to any charity over the phone, no matter how persuasive the pitch is -- unless you have firsthand knowledge of the organization.

Instead, you should request that info on the caller's organization be sent to you. Most bogus outfits will hang up on you at that point. The legit ones will comply with your request.

Finally, you can also use Give.org to help vet charities.

RIP-OFF ALERT: You've seen and heard about the suffering in the Midwest because of flood activity, and the heroic efforts of everyday people who pitched in by sandbagging to reinforce levees.

When bad things happen, it brings out the best and the worst in people.

The FTC has issued a new warning about scamsters who are stealing money by pretending to collect funds for flood relief charities.

You could substitute any other natural disaster in here and still get the same outcome. It could be Hurricane Katrina, the Christmas Day Tsunami or 9/11. These sleaze-balls come out and steal at a time when people are genuinely concerned and open their wallets.

So be wary -- after any disaster -- when you get a call from a solicitor. Don't give them any money over the phone. Ask them instead to send info and then make your decision. Be wary also of phony e-mails.

You only want to give to organizations that you have firsthand knowledge of or that you know to be OK. If you're in doubt, research a potential charity at Give.org.

The sad truth is that many people will be "once burned, twice shy" when it comes to opening their hearts (and wallets) during the next disaster. That's why it's important to do your homework first before you give any money.

Clark works with a sales representative who is very charitable with his money. After being solicited by someone trying to collect money for firefighters, the sales rep agreed over the phone to give $25 to the cause. But when the pledge card arrived in the mail, there was a message stating it was not a charity and contributions were not tax deductible. The rep was in a classic moral dilemma; he wanted to honor his commitment, but no longer felt comfortable about it. Clark told him not to give the $25 in this instance.

With the holidays approaching, we're susceptible to being taken advantage of through our generosity. So anytime a solicitor calls seeking funds, your standard answer should be, "I don't give money out over the phone. If you'd like, you can send me some literature on your organization so I can make an informed decision." If you say that to a scammer, you'll probably hear Mr. Buzz -- the dial-tone -- because they'll be on to the next caller. There's a grey area here with phony solicitors seeking money for fire departments, police departments and the military. Clark recently heard of one group raising money for soldiers. But it turned out only a third of 1 percent of the money was actually going to soldiers. That means 99.7 percent was being stolen from people like you with false promises. You also need to beware of union-collection activities. Any contributions you make are not deductible and do not go directly to the benefit of fire or police workers. They instead go to union-funding efforts in law enforcement and public safety fields. The bottom line is that you should have firsthand knowledge of any group you're considering funding. Many legitimate charities are inefficiently run, so only pennies may actually go to the intended recipient. Give your money instead to organizations you know you can trust and believe in. The best organizations for this are ones you're involved in yourself. Clark has compiled some tips to help you know exactly how your charitable donations are being used.

Did you know that if a criminal gets your credit card number, they can show their "generosity" by donating money to charity using your credit card? Why are criminals doing this? This is happening because the charities will let the criminal know if the card is verified and still active. More importantly, it's a great way for criminals to test if the card will be reported stolen, according to a story Clark read in Newsday. Criminals can then sell your verified card number for three times the value of an unverified card! If someone steals an unverified number, it's worth $6; if it is verified, it sells for $18. The Red Cross has reported 700 fraudulent donations using stolen cards last month alone! Therefore, if you see a small unauthorized charity donation on your bill, be alert. Clark says the solution to this problem is so easy. The credit card companies should do what is done in Europe by inserting a smart chip in the card which requires a secret code. So even if someone steals your card, if they don’t know your code the card can’t be used. The result in Europe is that credit card fraud is nowhere near the problem it is in the United States. So why are we still using '60s technology to print out credit cards here? It seems like the banks would rather deal with the fraud that occurs and then clean up the mess after the fact, rather than spend the money proactively to get things done right in the first place.

Every year around this time, criminals come out of the woodwork and set up fake charities either on the Internet or out of someone’s home. These companies collect your money and rarely give any to actual charities. Others have names similar to legitimate charities so people get duped into thinking they are the real thing. One of the biggest scams lately is to make up phony diseases and then collect money to prevent them. These crooks often call to ask for your help and they push until you give in. If someone calls to solicit money, you want to ask for literature. Many will hang up at that point. But if you do receive some information in the mail, you want to check out the charity watchdog sites mentioned above. The sites also tell you what percentage of your money goes to the actual charity instead of “administration costs.” If you’re giving away your hard earned money, make sure the organization is worthy.

Clark has gotten a steady increase in calls from people who think they’ve won the lottery. This hoax is so bad right now that The Dallas Morning News has a story about the “Unlucky Seven” worst scams out there, and lotteries are – without a doubt – No. 1. Spain, Germany and Holland are just three of the countries that supposedly have lotteries. An 86-year-old woman featured in the story ended up giving more than $88,000 to these crooks. She was told upfront she needed to cover “administrative costs.” Then, each time, it was something more. She never recovered her money, and the crooks were never caught. When you get these e-mails, you want to believe they are real. They certainly look it. But if they ask for money – even a little – to get you your money, it’s a scam. Throw the paperwork in the trash. The second biggest scam is home repairs. These people get upfront money and then do shoddy work or no work at all in some cases. Work-at-home scams are in position No. 3, and phony charities are No. 4. These scams often affect seniors more than others, but everyone is at risk. Fraudulent “living trusts” come in at No. 5. You need a living trust in only a few circumstances, so most of the people are just trying to sell you insurance products. No. 6 is e-mail phishing scams. And, No. 7 is probably the ugliest of the “Unlucky Seven.” It’s when you’ve already been scammed and a service offers to help you recover your money. The very same people who took your money the first time are the ones behind this, and you give them more trying to get it back.

History is repeating itself as tons of phony charity Web sites are popping up in the wake of Hurricane Katrina. The number was over 2,000 at last count. Apparently, con artists were setting them up before the hurricane ever hit land. The same thing happened after the tsunami last year. Scumbags will always come out of the woodwork when a tragedy occurs. It’s all about taking advantage of people’s generous nature. So, be aware of the four ways someone can con you. They are:
- An e-mail from an organization
- A phone call from a solicitor
- A letter in your mailbox
- Phony web sites

Clark talks about this every November or December when people tend to be more generous. And it’s happening right now. Clark doesn’t want you to give to the wrong people. What happens then is people are much less willing to give money at all. To avoid being taken, give directly to an organization that you know is legitimate, such as the Red Cross or your local church. Habitat for Humanity will most likely be involved in the rebuilding of New Orleans, so you could also give directly to that group. Take the initiative instead of reacting to someone who contacts you and asks you for money. When it comes to individuals in parking lots, it’s up to you. But you don’t know if the story is true when they ask you for money. Giving to an organization as a whole is much safer.

There is a glaring hole in the security of the nation’s banking systems. Banks have failed miserably in their responsibility to secure our accounts. Criminals can basically draw money out of our accounts at will, as long as they present a believable draft. It’s sometimes called an electronic debit or demand draft. These came about originally through shows like QVC, where people take information from you over the phone and deduct the money from your account. And according to MSNBC, these criminals are now creating their own checks to draft your account. In fact, there are Internet sites that help people create these checks, and, even worse, charities are the new target! Criminals give a small donation to a charity. At that point, the charity deposits it in its account. When the check comes back it has the bank’s transit numbers on the check. The criminal then presents a draft to the bank with that number and takes the money out of the charity’s account. Can you believe that? There is no excuse for the lack of interest on the part of the banks. No, the government didn’t create this crime. But the inaction on their part is unacceptable. Just make sure you are checking your account at least every week to make sure there are no unauthorized debits.

Have you ever gotten a call from someone trying to collect money for a police or firefighter’s group? You may not know it but the people calling are professional fundraisers, and the money being collected goes to that person. Almost nothing goes to the police or firefighters. Yet, these organizations have been very successful since the attacks of Sept. 11, 2001. In many cases, what little money is left over goes to union organizations, not for charity purposes. So, how do you show your support and faith in a cause while making sure you’re giving the money to a legitimate cause? When someone calls for this reason, always ask to be sent literature before you give money. If the group is legit, it will send you propaganda. If it is not, the people will hang up. Christa, Clark’s executive producer, also suggests giving items that emergency workers can use at the fire and police stations, such as pots and pans or a new appliance. Drop by the station house and ask them what they need. You can do them a world of good and help them do their jobs better just by asking.

Clark gets very upset about all of the phony charities out there that take your hard-earned money and use it for personal gain. One infamous character was a man named Kent Stryker, who operated one of these phony charities in 1998. He registered 200 phony charity names that sounded like legitimate organizations including the American Cancer Society and the American Heart Association. Then, people often called directory assistance for the phone number of one of these legitimate organizations, but they said a variation of the name .The operator then gave them the number to Stryker’s phony charity and they would hand over their money unknowingly. Today, Clark saw a story in the L.A. Times reporting that Stryker was finally being sentenced for 12 counts of mail fraud. It took six years to sentence this guy, and he’s finally going to jail. The lesson for you to remember is that you never want to give someone money or access to your credit card over the phone. Always ask for literature first. People are much more reluctant to contribute to charities if they’ve been taken by one of these scams. So, make sure you’re giving to the right one.

When you give to charity, you feel good, right? Sometimes people act in ways that are not directly in their own best interest, and it’s a beautiful part of human nature. But there are also human beings who are, at some level, evil. They come in all walks of life, and, unfortunately, many of them have ended up in the charity business. Some may even do legitimate charity work to make it look sincere. But then they pay themselves with your money when no one is looking. They hurt overall giving because they make people skeptical about giving to organizations in the future. It’s been a problem for years and it happens, in part, because the IRS has been very lax in its standards for giving non-profit status. Basically, it’s an honor system and anyone can claim tax-exempt status. But it has become such a big business with phony charities that the IRS is going through a crack down. The agency has found a couple thousand charities that are fronts for people to siphon off money. According to the New York Times, there will now be 370 people at the IRS whose sole job is to hunt down these organizations. The first targets are the charitable organizations that pay top executives salaries of more than $1 million a year. There are apparently hundreds of them. So, it will take a while to clean up all of the scum. And, there will still be crooks out there. That’s why you need to do your homework when giving money. First of all, get to know organizations. Give to those you know about. Secondly, don’t give money over the phone. Designate one time a year to sift through all of the solicitations you’ve gotten and pick out the ones you’ll give to. Also, check out the site, give.org, which lists charities and what percentage of your money actually goes to the charity and not the administrators. You need to be your own police officer.

Clark often reports on ripoffs going on in the consumer world. Today, he has a Top 10 list of scams, schemes and scandals, provided by the state regulators who watch over financial analysts and brokers. Drum roll please…. The No. 10 scam is variable annuities. If you don’t know what these are and you don’t have any, good. If you do, you don’t want to put any more money into these plans. They have massive commissions and are absolutely horrible for your wallet. No. 9 are scandalous mutual fund companies. No. 8 is Internet fraud. No. 7 are “high yield investment” scams. Some that Clark has received calls on involve exotic overseas investments that are a complete scam. Insurance agents who sell people bogus investments come in at No. 6. Most insurance agents are honest, but a number of them have been involved in very scandalous affairs. No. 5 are church ripoffs. Just because someone seems religious does not mean that person is on the up and up. At No. 4, phony brokers. Just because someone says something is going to be a great investment doesn’t mean it will. Promissory notes – or fake CDs – are No. 3. These are promises that someone will pay you later if you give them money. But there is no guarantee, and it’s not safe. No. 2 is any kind of scam against seniors. If you’re not involved in your parents’ finances, be nosy! And, the No. 1 scam in the U.S. involving your wallet are Ponzi schemes. These are schemes where criminals recruit people to pay back other people who have invested, and then you have to recruit someone once you’re in. Eventually, these collapse because there are no more people willing to “invest.” There a lots of people who will sell you sizzle, but that’s all it is.