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

Even during prosperous times, scammers target your generosity relentlessly. But the holiday season, when giving spikes and emotions intensify, they strike with greater force.

In a startling case from a few years ago, law enforcement shut down a massive telefunding scam that executed 1.3 billion deceptive donation calls, bilking donors out of more than $110 million. (Federal Trade Commission)

Meanwhile, Cornell University researchers uncovered over 800 social media accounts running donation scams on platforms including Facebook, X, and Instagram, funneling victims toward bogus fundraising campaigns.

For small businesses, a single error in charitable giving risks more than financial loss — it can associate your brand with fraud, tarnish your reputation, and weaken trust among clients, partners, and your community.

Here's your complete guide to properly vetting fundraisers, recognizing warning signs, and safeguarding your business and goodwill this holiday season.

Essential Tips to Verify Fundraisers Before Donating

A legitimate fundraising effort should clearly provide answers to these crucial questions:

• Who is the organizer, and what is their relationship to the beneficiary?
• How will the funds specifically be allocated and over what timeframe?
• Who manages withdrawals, and is there a transparent path ensuring the money reaches its intended cause?
• Do close associates like family or friends publicly endorse the campaign?

If any of these details are unclear or missing, request clarification immediately. Avoid fundraisers that respond with silence or evasiveness — these are clear red flags.

Key Warning Signs That Indicate a Scam

Be cautious and investigate further if you notice any of the following:

• The fundraiser page contains misleading or blatantly false claims.
• Funds are not utilized for the promised purpose within a reasonable period.
• There is impersonation or copying of someone else's story.
• The narrative seems overly perfect or designed to overly manipulate emotions.

If multiple warning signs appear, report the fundraiser immediately and refrain from donating.

How to Vet Charities Beyond Crowdfunding

Even well-known charities can sometimes employ questionable practices. Watch for these indicators:

• Clear program descriptions, detailed financial statements, and annual reports.
• Information transparently showing what portion of donations goes to programs versus overhead.
• Search results for the charity's name alongside words like "fraud," "scam," or "complaints."

Lack of transparency or negative feedback calls for heightened caution.

Common Tactics Used by Charity Scammers

Watch for these manipulative techniques:

• Requests for donations via gift cards, wire transfers, or cryptocurrency—reputable charities typically accept credit cards or checks.
• Websites lacking https security (check for the "s") indicating unsafe data transmission.
• High-pressure demands to donate immediately—a tactic to prevent critical thinking.
• Claims that you've already pledged or donated without your recollection—always verify before sending money.

Scammers are sophisticated; even sleek websites and professional messaging can conceal deceitful motives.

Why Proper Vetting Matters for Your Business

Your company's charitable contributions, whether publicized or private, become a reflection of your brand. A donation linked to a scam—or even an employee's fundraising done in your company's name—can seriously jeopardize your brand's integrity.

Moreover, many tactics used in charity scams—like urgent requests, impersonations, and fake websites—overlap with broader threats like phishing, invoice fraud, and wire transfer scams. Training your staff to recognize fake fundraisers helps fortify your overall fraud defense.

Strategies to Safeguard Your Business and Reputation

Implement these measures to protect your giving efforts:

1. Create a Formal Donation Policy: Define channels for donations, set approval limits, and communicate these standards within your company.
2. Educate Employees: Train your team to spot fraudulent fundraisers and to verify any donations made on behalf of your business.
3. Donate Through Trusted Platforms: Always give via official charity websites rather than random links from emails or social media.
4. Ensure Transparency: If your company publicizes donations, double-check the legitimacy of the charities you endorse.
5. Monitor Usage of Funds: Post-donation, verify that funds are spent as intended by reviewing impact reports often published by charities.

Keep Your Holidays Filled with Generosity—Not Risk

The holiday season is your opportunity to make a positive impact, not to invite complications. Smart protocols and vigilance protect both your finances and your hard-earned reputation.

If you want your team equipped to identify scams—whether fake fundraisers, phishing emails, or fraudulent payment requests—reach out today.

Call us at 336-310-0277 or click here to book your complimentary Discovery Call now.

Because the most valuable gift you can offer your business and community is trust that no scam can steal.