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

Scammers are always lurking around acts of kindness, especially during the holiday season when generosity peaks and emotions run deep.

Recently, a large telefunding scam was dismantled after authorities uncovered that fraudsters had made an astonishing 1.3 billion deceptive calls asking for donations, collecting over $110 million from unaware donors. (Federal Trade Commission)

Researchers at Cornell University also revealed that over 800 social media accounts exploit platforms like Facebook, X, and Instagram to run fake donation campaigns.

For small businesses, one careless charitable donation can do more than just lose money—it can inadvertently link your brand to fraud, harm your reputation, and erode trust among customers, partners, and your community.

Learn how to verify fundraisers, identify warning signs, and protect your business and good intentions during the giving season.

Steps to Verify a Fundraiser Before Donating

A trustworthy fundraiser will provide clear answers to these questions:

• Who is organizing this fundraiser, and what is their relationship to the beneficiary?
• How will the donated money be used, and within what timeframe?
• Who manages the fund withdrawals, and is there a transparent path for funds to reach the intended recipients?
• Do close contacts like family or friends publicly support the campaign?

If any answers are unclear or missing, request clarification. Unresponsiveness or vague replies are serious red flags.

Common Red Flags That Signal Scams

If you notice any below, stop and investigate further:

• False or misleading details on the fundraiser's page.
• Funds not allocated for stated purposes within a reasonable period.
• Impersonation of another individual or plagiarizing stories.
• Emotionally manipulative or overly perfect sounding stories.

When you encounter multiple warning signs, report the campaign and refrain from donating.

How to Vet Established Charities

Even well-known charities can sometimes engage in questionable practices. Check for:

• Open program overviews, financial transparency, and published annual reports.
• Clear breakdowns of donation allocations between programs and administrative costs.
• Online searches revealing any "fraud," "scam," or "complaints" related to the charity's name.

Missing information or negative feedback should raise caution.

Beware of Common Charity Scam Tactics

Watch for these warning signs:

• Requests to donate using gift cards, wire transfers, or cryptocurrencies—legitimate charities usually accept credit cards or checks.
• Donation websites lacking https security (look for the secure "s" in the URL).
• Pressure tactics urging you to donate immediately—this rush is designed to bypass your careful consideration.
• Claims that you already committed funds or pledged before—always verify before sending money.

Scammers cleverly disguise themselves with professional websites and convincing messages, so stay vigilant.

Why Protecting Your Business Matters

Your business's charitable efforts, whether public or private, reflect on your brand. Donating to a scam, or having an employee give under your company's name unknowingly, can associate your reputation with fraud.

Moreover, many fraud tactics used in charity scams, like urgency, impersonation, or fake websites, also target businesses through phishing, invoice scams, and wire transfer fraud. Teaching your team how to spot fake fundraisers is a critical defense training against various scams.

How to Safeguard Your Business and Its Goodwill

Follow these proven steps to ensure safe and impactful giving:

1. Establish a Donation Policy: Clearly define donation guidelines and approval processes for your company.
2. Educate Employees: Train your team to recognize fake fundraisers and verify authenticity before donating using your business name.
3. Use Reliable Channels: Always donate directly through verified charity websites, avoiding random email or social media links.
4. Maintain Transparency: If you publicize your donations, regularly verify and confirm the legitimacy of supported charities.
5. Monitor Donations: Follow up to ensure funds are utilized as promised; many charities publish impact reports.

Celebrate a Generous, Risk-Free Holiday Season

The holiday season is a time for giving back without regrets. Implementing smart checks and strategies safeguards your contributions and your business's reputation.

Want your team to confidently identify scams—whether it's fraudulent fundraisers, phishing emails, or fake payment demands?

Call us at (541) 726-7775 or click here to schedule your free 15-Minute Discovery Call today.

Because the most valuable gift to your business and community is unshakable trust.