Holiday Scams In Disguise: What To Watch Out For When Donating Online

Scammers are always on the lookout for generosity, but the holiday season, when giving spikes and emotions soar, is their prime time.

Notably, a massive telefunding scam was uncovered a few years ago, revealing that fraudsters had made 1.3 billion deceptive donation calls, misleading donors and siphoning off more than $110 million. (Federal Trade Commission)

Research from Cornell University also uncovered over 800 fake social media accounts running donation scams on platforms like Facebook, X, and Instagram, duping victims into contributing to fraudulent fundraisers.

For small businesses, one wrong move in charitable giving can cost more than money — it can entangle your business name in fraud, tarnish your reputation, and erode trust with customers, partners, and the wider community.

Here's your essential guide to thoroughly vetting fundraisers, spotting warning signs, and safeguarding your business's goodwill this holiday season.

Essential Steps to Vet Fundraisers Before You Donate

A genuine fundraiser should provide clear answers to these questions:

• Who is organizing this fundraiser, and what is their relationship to the beneficiary?
• How will the donations be used, and what is the expected timeline for fund utilization?
• Who manages the withdrawal of funds? Is there a transparent and accountable process ensuring funds reach the intended recipients?
• Are close associates of the beneficiary — such as family or friends — publicly supporting the campaign?

If any of these details are unclear or missing, request clarification immediately. Evasive responses or silence should raise immediate concerns.

Warning Signs That Indicate Potential Fundraising Scams

Pause and investigate if you notice any of these red flags:

• Fundraiser information that is misleading, inaccurate, or outright false.
• Delayed or inexplicable use of funds that don't match the fundraiser's stated purpose.
• Impersonation of individuals or use of stolen stories to solicit donations.
• Emotionally manipulative narratives or stories that seem too perfect to be true.

Spotting multiple warning signs? Report the fundraiser and avoid donating.

How to Vet Charities Beyond Crowdfunding Campaigns

Even reputable charities may have questionable practices. Look for these clues when evaluating them:

• Detailed program descriptions, transparent financial statements, and published annual reports.
• Clear disclosure of how donation dollars are divided between programs and overhead costs.
• Any negative reviews or flags showing up in search results with terms like "fraud," "scam," or "complaints."

Signs of vagueness or negative feedback should be cause for careful reconsideration.

Common Tricks Used by Charity Scammers

Beware if you encounter:

• Requests to donate via gift cards, wire transfers, or cryptocurrencies — legitimate charities usually accept credit cards or checks.
• Websites lacking https security protocols (look for the "s" in the URL) indicating insecure data transmission.
• Urgent demands to donate immediately — a tactic designed to short-circuit rational decision-making.
• Claims that you've already pledged or donated when you don't recall doing so — always verify before proceeding.

Scammers are sophisticated. Even professional-looking websites and compelling headlines can mask fraudulent intentions.

Why Charitable Giving Matters for Your Business

Your company's generosity, whether shared publicly or privately, becomes part of its reputation. A donation caught up in a scam — or employees donating under your business name without caution — can entangle your brand in negative fraud stories.

Additionally, the deceptive strategies scammers use in charity fraud — urgency, impersonation, fake websites — often overlap with phishing, invoice scams, and fraudulent wire transfers targeting businesses. Training your staff to identify fake fundraisers equips them to detect a wide range of fraud attempts.

Proven Strategies to Safeguard Your Business and Its Reputation

Implement these essential steps to ensure your donations are both smart and secure:

1. Establish a Clear Donation Policy: Define your company's giving guidelines and set approval protocols.
2. Educate Your Team: Train employees to recognize fake fundraisers and verify requests before donating under your business name.
3. Use Verified Channels: Make donations directly through official charity websites rather than unknown links in emails or social platforms.
4. Ensure Transparency: If your business publicizes donations, verify the legitimacy of the recipient charities.
5. Monitor Use of Funds: Follow up post-donation to ensure funds are allocated as promised; many charities provide impact reports.

Keep Your Holiday Giving Generous, Secure, and Impactful

The holiday season offers a wonderful opportunity to give back — don't let fraud overshadow your goodwill. Thoughtful checks and clear policies protect both your investment and your brand's integrity.

Want your team equipped to detect scams — including fake fundraisers, phishing emails, or fraudulent payment demands?

Call us at 817-277-1001 or click here to schedule your free 15-Minute Discovery Call today.

Because the greatest gift you can offer your business and community is unshakable trust.