Even in seasons of giving, scammers are watching. During the holidays, when charitable donations surge and emotions run high, cybercriminals see opportunity.

A few years ago, the Federal Trade Commission uncovered a massive telefunding scheme responsible for 1.3 billion deceptive donation calls, collecting over $110 million from unsuspecting donors. Meanwhile, a Cornell University study found over 800 fraudulent fundraising accounts operating on social platforms like Facebook, X, and Instagram.

For small businesses, one wrong click or donation doesn’t just risk money  it risks brand reputation and client trust. A publicized connection to a fraudulent charity can cause lasting damage.

Here’s how to vet fundraisers, recognize red flags, and keep your generosity (and your name) safe this holiday season.

 

How to Vet a Fundraiser Before You Donate

A legitimate fundraiser should answer these questions clearly:

  • Who is organizing it, and what is their relationship to the recipient?
  • How will the funds be used, and on what timeline?
  • Who controls withdrawals, and how do funds reach their target?
  • Do close contacts (family, friends) publicly support the campaign?

If any answer is missing, unclear, or evasive  that’s your first red flag. Always pause and verify before donating.

 

Red Flags That Often Signal Donation Scams

If you notice any of these, stop and investigate before contributing:

  • False or exaggerated claims on the fundraiser page
  • Delays in using funds for the stated purpose
  • Copying or impersonating another person’s story
  • Emotionally manipulative or “too perfect” backstories

Multiple red flags mean it’s time to report and avoid the fundraiser.

 

Vetting Charities (Not Just Crowdfunding Campaigns)

Even legitimate-looking charities can have shady practices. Before donating, check for:

  • Transparent financial reports and annual disclosures
  • Details about how donations are spent (programs vs. overhead)
  • Negative search results using terms like “fraud” or “complaints”

Lack of transparency is never a good sign. A quick search could save your business from a PR disaster.

 

Common Tactics Charity Scammers Use

Scammers often use urgency and impersonation to bypass logic. Watch for these red flags:

  • Requests for payment through gift cards, wire transfers, or crypto
  • Websites missing https in the URL (no “s” means insecure)
  • Pressure to “donate now” or “confirm your pledge”
  • Messages claiming you donated previously when you didn’t

Even professional-looking websites or ads can be traps. Stay skeptical and verify through official channels.

 

Why This Matters for Your Business

When your company donates, that generosity reflects on your brand. But if your contribution goes to a fake charity  or an employee donates using your company name  it can connect your business to fraud.

Even worse, the same manipulation tactics used in donation scams often show up in phishing, invoice fraud, and wire transfer scams. Training your staff to recognize fake fundraisers helps them spot cyber threats across the board.

 

How to Protect Your Business (and Your Goodwill)

Here are five steps to keep your giving safe and your brand reputation strong:

  1. Create a Donation Policy: Set rules for how and where your company donates, and define approval thresholds.
  2. Educate Employees: Train staff on how to verify fundraisers before contributing under your business name.
  3. Use Trusted Channels: Only donate through verified charity websites  never links from emails or social media.
  4. Verify Public Donations: Double-check the legitimacy of charities before announcing them publicly.
  5. Monitor After Giving: Follow up to confirm your funds are used properly (reputable charities share impact reports).

 

Keep Your Holidays Generous  Not Risky

The holidays should bring joy and community impact, not financial loss. Smart verification and clear policies can protect both your goodwill and your business.

Want your team to learn how to recognize scams  from fake fundraisers to phishing and payment fraud?
Schedule your free discovery call with our Dallas-Fort Worth IT and cybersecurity experts today.

Because the best gift you can give your business  and your community  is trust that can’t be taken.