AFP warns of sham charities raising funds for terror groups

Australians are being urged to exercise caution when donating to overseas causes, amid warnings that terrorist organisations in the Middle East are exploiting humanitarian appeals to raise funds.

The alert follows a joint statement from the Australian Federal Police-led Joint Threat Financing Group and AUSTRAC, which said terrorist actors may pose as charities or use front organisations to solicit donations that are later diverted to support terrorism.

Authorities said funds are often raised through online campaigns that appear legitimate, particularly in response to crises, but may ultimately be redirected to extremist groups.

AUSTRAC’s 2024 terrorism financing national risk assessment identifies the Middle East as a key destination for some funds originating in Australia, naming groups including Hamas and Hezbollah among those assessed as likely to receive limited financial support from Australian sources.

The report states that the war in Gaza has led to increased financial flows from Australia to the region for apparent humanitarian purposes, with some funds exposed to diversion or coercion by Hamas, particularly where charities operate in high-risk environments.

In one case study, AUSTRAC said suspicious transfers involving an Australian charity, alongside organisations in Indonesia and Turkey, appeared to form part of a coordinated effort to move funds into high-risk jurisdictions in the Middle East and North Africa.

International enforcement actions have highlighted similar methods. In 2024 and 2025, the United States Treasury sanctioned a number of individuals and organisations it described as sham charities used to raise funds for Hamas under the guise of humanitarian work. In early 2026, further action was taken against Gaza-based organisations accused of falsely presenting themselves as medical charities while supporting militant activities.

AFP Assistant Commissioner Stephen Nutt said the tactic was long established.

“Terrorist organisations pretending to be charities is a long-standing tactic used to con people out of their money and fund terrorist activity,” he said.

“These groups do not care how they obtain financial support or whether they exploit the goodwill of ordinary people.”

AUSTRAC Deputy CEO Intelligence Dr John Moss said authorities were working to detect and disrupt suspicious financial flows.

“AUSTRAC works closely with our partners through the Joint Threat Financing Group to identify suspicious fund flows and stop them reaching terrorist organisations overseas,” he said.

Jewish organisations, including the Australia/Israel & Jewish Affairs Council, have argued that groups such as Hezbollah should not be treated as having separate political and military wings, stating the organisation operates as a single entity across all its activities.

Authorities are urging Australians to donate only to established, registered charities and to verify appeals through the Australian Charities and Not-for-profits Commission register.

Anyone who suspects a fraudulent appeal is urged to contact the National Security Hotline on 1800 123 400.