The holidays bring out the best in people, and sometimes the worst in scammers.
Every year, generosity spikes, and cybercriminals notice. They hide behind fake charities, emotional stories, and donation pages that look legitimate until your money and data are gone.
A few years back, the FTC uncovered a massive telefunding fraud that made 1.3 billion deceptive donation calls and stole more than $110 million from donors.
Researchers at Cornell University also found more than 800 fake donation accounts operating on social media platforms like Facebook, X, and Instagram.
The truth is, scams don’t just target individuals. They target businesses too. One bad donation, especially if it’s made under your company name, can cost more than money. It can hurt your reputation and damage the trust you’ve built with your clients and community.
Here’s how to protect your business and keep your giving safe this season.
How to Vet a Fundraiser Before You Donate
Before you give, make sure you can answer a few simple questions:
- Who’s organizing the fundraiser, and what’s their connection to the recipient?
- How will the funds be used, and over what timeframe?
- Who controls withdrawals, and how do the funds reach the intended person or organization?
- Do family members or close contacts publicly support the campaign?
If any of those answers are vague or avoided, that’s a red flag.
Red Flags That Often Signal Scams
If you notice any of these, pause and verify before giving:
- Misleading or false information on the fundraiser page
- Funds not being used for the stated purpose
- Someone impersonating another person or copying a real story
- Emotional or overly perfect stories designed to create urgency
One or two warning signs are enough to slow down. A few together mean it’s time to walk away.
Vetting Charities (Not Just Crowdfunds)
Even large charities can have transparency issues. Take a moment to:
- Look for clear financial reports and program descriptions
- Check how much of each dollar goes to the actual cause
- Search the charity’s name with words like “fraud,” “complaints,” or “reviews”
If the information is hard to find, think twice. Reputable organizations make it easy to see where donations go.
Common Tactics Charity Scammers Use
Watch for these red flags. They’re the same tricks used in phishing and wire fraud:
- Requests to donate with gift cards, wire transfers, or cryptocurrency
- Websites missing “https” in the URL (no “s” means no security)
- Pressure to donate immediately before you can think it through
- Claims that you already pledged or gave when you haven’t
If something feels off, trust your instincts and double-check before sending money.
Why This Matters for Your Business
Your company’s generosity is part of your brand. One fake fundraiser can damage that image, especially if an employee donates under your business name or shares a fraudulent campaign publicly.
Even worse, the same tactics scammers use for fake fundraisers — urgency, impersonation, and fake links — are also behind phishing, invoice fraud, and wire scams.
Teaching your team to spot fake fundraisers is about more than protecting your donations. It’s training them to recognize scams of all kinds.
How to Protect Your Business and Your Goodwill
Here’s how to keep your giving safe and your brand protected:
- Create a donation policy. Decide how and where your company donates, and set approval steps for accountability.
- Educate your team. Remind employees to verify fundraisers before donating.
- Use trusted channels. Always donate through official charity websites, not links in email or social media posts.
- Verify public donations. If you publicize company giving, confirm the charity’s legitimacy first.
- Follow up. Check that the funds were used as promised. Many legitimate charities post impact updates or reports.
Keep Your Holidays Generous, Not Risky
The holidays should be about giving, not regret. A few smart checks protect your business, your money, and the trust you’ve worked to earn.
Want to make sure your team knows how to spot scams — whether it’s a fake fundraiser, a phishing email, or a bogus payment request?
Book a free discovery call with our team. We’ll show you how to protect your people and your business from the latest scams.
Because the best gift you can give your company this holiday season is trust that can’t be stolen.
