November 16, 2025
Holiday Scams In Disguise: What To Watch Out For When Donating Online
The holidays bring out the best in people — and, unfortunately, the worst in scammers.
During this season of giving, generosity runs high, and cybercriminals know it. They exploit our goodwill through fake charities, fraudulent fundraisers and donation scams designed to tug at the heartstrings — and drain your wallet.
According to the Federal Trade Commission, one major telefunding scam made 1.3 billion deceptive calls and collected over $110 million from unsuspecting donors before it was shut down. Meanwhile, Cornell University researchers found over 800 fake donation accounts operating across social media platforms like Facebook, X and Instagram.
For individuals, a scam can mean losing money.
For small businesses, it can mean something even worse — reputation damage and loss of trust with clients, partners and your community.
Here’s how to spot the red flags, vet fundraisers properly and keep your business (and your goodwill) safe this holiday season.
How To Vet A Fundraiser Before You Donate
Before giving, make sure you can clearly answer these questions:
- Who is organizing this fundraiser? What’s their connection to the recipient?
- How will the funds be used — and when?
- Who controls withdrawals? Is there transparency on how money reaches its intended target?
- Do family or friends publicly support the campaign?
If any of these details are unclear — or the organizer avoids your questions — hit pause. Transparency is non-negotiable.
Red Flags That Often Signal Scams
If you notice any of the following, it’s time to walk away (and possibly report it):
- Vague or misleading information about the fundraiser’s purpose
- Funds not being used for the stated cause in a reasonable time frame
- Impersonation of a real person or story
- Messages that seem too emotional or manipulative to be real
Multiple red flags = major risk. When in doubt, verify or don’t donate.
Vetting Charities (Not Just Crowdfunds)
Even official-looking charities deserve a closer look. Before you give:
- Check for clear financial breakdowns, program descriptions and annual reports
- Review how donations are allocated (programs vs. administrative costs)
- Search the organization’s name plus “fraud,” “scam” or “complaints”
If you can’t find transparent data or see a pattern of negative reviews, that’s your sign to move on.
Common Tactics Charity Scammers Use
Fraudsters rely on emotion and urgency to push people into hasty decisions. Watch for these telltale tricks:
- Requests for gift cards, wire transfers or crypto (legitimate charities use credit cards or checks)
- Websites without HTTPS — that missing “s” means the site isn’t secure
- Pressure to donate immediately or limited-time appeals (“Act now before midnight!”)
- Messages claiming you already pledged or donated when you haven’t
Even professional-looking sites and well-written posts can be fakes. Always verify before giving.
Why This Matters For Your Business
When your business donates — whether publicly or through employee initiatives — that generosity becomes part of your brand identity.
A single donation to a fraudulent cause can connect your name to a scam, potentially damaging credibility and eroding client trust.
Even worse: The same manipulation tactics used in fake charity scams — urgency, impersonation, fake links — are also used in phishing, invoice fraud, and business email compromise.
Teaching your team to question donation requests now helps them spot other forms of cyber deception later.
How To Protect Your Business (And Your Goodwill)
Keep your holiday giving both generous and secure by following these best practices:
- Create a Donation Policy: Define how and where your business donates, and set approval steps for contributions.
- Educate Employees: Train your team to verify campaigns before donating, especially under your company name.
- Use Trusted Channels: Only donate directly through official charity websites — never through random email or social media links.
- Be Transparent: If your business promotes its charitable giving, confirm every charity’s legitimacy first.
- Follow Up: After donating, check for public reports or updates showing how funds were used.
These steps help you give confidently — without risking your brand or your bottom line.
Keep Your Holidays Generous — Not Risky
The holidays should be a time for giving, not regret.
By taking a few smart precautions, you can protect both your business and your community from online scams.
Want to make sure your team can spot donation scams, phishing emails and fake payment requests before they cause damage?
Book your free discovery call here.
We’ll show you how to protect your company from scams year-round — because the best gift you can give your business is trust that can’t be stolen.
