Even in good times, scammers circle around generosity. But during the holidays, when giving increases and emotions run high, they truly pounce.
A few years ago, a massive telefunding fraud was shut down after authorities discovered the perpetrators had made 1.3 billion deceptive donation calls and collected over $110 million from unsuspecting donors (Federal Trade Commission).
At the same time, researchers from Cornell University found that on social media alone, 800+ accounts operated donation scams tricking victims into fake fundraisers on Facebook, X (Twitter), and Instagram.
For small businesses, one wrong click in charitable giving can do more than lose money, it can tie your company name to fraud, damage your reputation, and erode trust with clients, partners, and your community.
Here’s how to vet fundraisers, spot red flags, and keep your goodwill (and your business) safe this season.
How To Vet A Fundraiser Before You Donate
A legitimate fundraiser should clearly answer:
- Who is organizing this, and what’s their connection to the recipient?
- How exactly will the funds be used and on what timeline?
- Who controls withdrawals?
- Do friends or family of the recipient publicly support the campaign?
If those details are vague or missing, ask for clarification. Silence or evasive answers? That’s a red flag.
Red Flags That Often Signal Scams
If you see any of these, stop and investigate:
- False or misleading info on the page
- Funds not used for the stated purpose
- Impersonation of another person or stolen photos
- Stories that sound too perfect or overly emotional
If multiple warning signs show up, report the fundraiser and skip the donation.
Our IT Support and cybersecurity awareness trainings help protect your team from social engineering scams that start just like fake fundraisers.
Vetting Charities (Not Just Crowdfunds)
Even established charities can have shady practices. Look for:
- Transparent reports and program breakdowns
- Clear use of funds between programs vs. overhead
- Search results that don’t include words like “fraud” or “complaints”
If details are missing or reviews are negative, take caution before sending money.
Common Tactics Charity Scammers Use
Watch out for these tricks:
- Pressure to donate via gift cards, wire transfer, or crypto
- Missing “https” (secure connection) on the donation page
- Emotional appeals with urgent deadlines
- Claims you already donated when you didn’t
Even slick, professional-looking websites can be fakes. Always take an extra minute to verify.
Why This Matters For Your Business
When your business gives to charity, publicly or privately that generosity reflects your values. But a donation to the wrong group can land your company name in a scam story.
Worse: scammers use the same tactics in charity scams as they do in phishing or wire fraud, urgency, impersonation, and fake links. Teaching your staff to spot phony fundraisers is also training them to stop business e-mail scams.
How To Protect Your Business (And Your Goodwill)
Five simple steps to keep your giving smart and secure:
- Set a Donation Policy: Decide where and how your business donates. Include approval thresholds.
- Raise Employee Awareness: Train your team to verify charities before giving under your company name.
- Use Trusted Channels: Donate through official charity websites and never through random e-mail links.
- Be Transparent: Double-check any group you publicly support before posting it online.
- Monitor Results: Revisit donations later to see if funds were used as promised.
Keep Your Holidays Generous, Not Risky
The holidays should be about giving back, not cleaning up a scam. Smart checks, clear policies, and simple cybersecurity habits protect your money and your reputation.
Want to make sure your team knows how to spot fake fundraisers, phishing e-mails, and bogus payment requests before they spread?
Book your free discovery call today.
Because the best gift you can give your business and your community is trust that can’t be stolen.
