November 17, 2025
Scammers lurk year-round, looking to exploit generosity, but the holiday season—when giving surges and emotions run deep—is their prime hunting ground.
Consider this: authorities recently dismantled a massive telefunding scam responsible for 1.3 billion deceptive donation calls, netting over $110 million from trusting donors. (Federal Trade Commission)
Meanwhile, researchers at Cornell University identified more than 800 fake fundraising accounts actively misleading victims on social platforms like Facebook, X, and Instagram.
For small businesses, one wrong donation can do more than drain funds—it risks associating your brand with fraud, damaging reputation and eroding trust among clients, partners, and your community.
Learn how to evaluate fundraisers, recognize warning signs, and protect your business and goodwill this holiday season.
How To Vet Fundraisers Before Donating
A trustworthy fundraiser will provide transparent answers to these key questions:
- Who is organizing the campaign and what is their relationship to the beneficiary?
- What specific purposes will donations serve, and what is the timeline for the funds' use?
- Who manages the withdrawal process, and how do the funds get to the intended cause?
- Do close contacts like family or friends publicly support the fundraiser?
Any evasiveness or missing details warrant caution—ask for clarification. Silence or dodging questions is a definite red flag.
Recognizing Red Flags That Signal Scams
Be wary and investigate if you notice these signs:
- Fraudulent or misleading details on the fundraiser's page
- Delays or inconsistencies in how funds are used relative to stated goals
- Fake identities or copied stories masquerading as genuine campaigns
- Overly perfect or emotionally charged narratives meant to manipulate
Multiple warning signs? Report the fundraiser and avoid donating.
How To Vet Charities Beyond Crowdfunding
Even well-known charities can sometimes be questionable. Look for:
- Clear program descriptions, detailed financial reports, and annual disclosures
- Transparency about the ratio of funds going to programs versus administrative costs
- Online search results showing no association with terms like "fraud," "scam," or "complaints"
A lack of transparency or poor reviews should raise your concerns.
Common Scammer Tricks to Watch For
Be alert to these tactics:
- Requests for donations via gift cards, wire transfers, or cryptocurrency—legitimate charities typically accept credit cards or checks only.
- Websites lacking HTTPS security (missing the "s"), meaning data is at risk.
- Urgent pressure to give immediately—this is designed to prevent you from thinking critically.
- False claims that you've already pledged or donated—always verify before sending money.
Scammers can be sophisticated—slick websites and persuasive headlines might hide malicious intent.
Why This Matters for Your Business
When your business donates—whether publicly or discreetly—your generosity reflects on your brand. Donations supporting scams, or employee gifts linked to your company, can entangle your brand in fraud scandals.
Moreover, the same deceitful tactics used in charity scams—urgency, impersonation, fake websites—also target businesses through phishing, invoice fraud, and wire transfer scams. Training your team to identify fake fundraisers equips them to detect wider fraud schemes.
How To Safeguard Your Business and Reputation
Follow these crucial steps to ensure your charitable giving is secure and effective:
- Establish a clear donation policy: Define how and where your business donates, and set approval limits.
- Raise employee awareness: Train your team to spot fake fundraisers and verify donations made under your company's name.
- Use only trusted donation channels: Give directly through official charity websites—not via suspicious email links or social media posts.
- Ensure transparency: If your business publicizes its donations, confirm the credibility of supported charities.
- Monitor donations ongoingly: Verify that funds are utilized as promised—many charities publish impact reports.
Make Your Holidays Safe and Generous
The holiday season is an opportunity to give back—not to experience regret. With smart verification and policies, you protect both your funds and your reputation.
Want your team trained to identify scams—from fake fundraisers to phishing emails and fraudulent payment requests?
Call us at (805) 295-8883 or click here to schedule your free 10-Minute Discovery Call today.
After all, the greatest gift you can give your business and community is trust that cannot be taken.
