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

Scammers often prey on generosity, especially during the holiday season when giving spikes and emotions are heightened.

For instance, a large telefunding scam was uncovered where fraudsters made 1.3 billion deceptive calls and tricked donors into handing over more than $110 million. (Federal Trade Commission)

Meanwhile, Cornell University researchers reported that over 800 social media accounts run donation scams, funneling victims to fake fundraisers on platforms like Facebook, X, and Instagram.

For small businesses, one wrong charity donation can cost more than money—it can link your brand to fraudulent activity, harm your reputation, and weaken trust with customers, partners, and your community.

Here's how you can thoroughly vet fundraisers, identify warning signs, and safeguard your business and its goodwill this holiday season.

Essential Steps to Vet a Fundraiser Before Donating

A credible fundraiser should provide clear answers to these questions:

• Who is organizing the fundraiser, and what is their relationship to the cause or recipient?
• Exactly how will the raised funds be allocated, and within what time frame?
• Who manages the withdrawal of funds, and is there a transparent path ensuring donations reach the intended destination?
• Do close associates (family, friends) publicly endorse the campaign?

If any detail is unclear or missing, request clarification before donating. Avoid fundraisers that respond with silence or vagueness—these are serious red flags.

Common Warning Signs of Donation Scams

If you encounter any of the following, pause and dig deeper:

• Fundraiser pages containing false or misleading details.
• Funds that fail to be allocated as promised within a reasonable period.
• Fraudulent impersonation or copied stories masquerading as genuine requests.
• Stories that feel overly perfect or emotionally manipulative.

If multiple concerns surface, report the fundraiser and refrain from donating.

How to Vet Charities Beyond Crowdfunding

Even well-known charities can exhibit questionable behavior. Be sure to check for:

• Clear program descriptions, detailed financial reports, and up-to-date annual statements.
• Explicit disclosure of how donations split between programs and operating costs.
• Negative search results including terms like "fraud," "scam," or "complaints" linked to their name.

A lack of transparency or poor reviews should make you proceed cautiously.

Common Tricks Charity Scammers Employ

Stay alert for these scam tactics:

• Requests for donations via gift cards, wire transfers, or cryptocurrency—real charities typically accept credit cards or checks.
• Websites without https security (no "s" in the URL), signaling unsecured data transfer.
• Pressure to donate immediately—a common ploy to rush your decision-making.
• Claims that you previously pledged or donated without your recollection—always verify before contributing.

Even professional-looking sites and sincere-sounding appeals can hide fraudulent motives.

Why Protecting Your Business Matters

Your business's charitable actions shape your public image. Donating to a scam—or an employee making a donation using the company name—can unwittingly associate your brand with fraud.

Moreover, the manipulative methods scammers use in charity fraud—urgency, impersonation, fake websites—are also tactics found in business-targeted scams like phishing, invoice fraud, and wire transfer fraud. Training your staff to identify fake fundraisers strengthens your overall defense against fraud.

Strategies to Secure Your Business and Its Reputation

Adopt these essential measures to keep your charitable giving secure and effective:

1. Establish a Donation Policy: Define donation procedures and approval limits clearly for your company.
2. Educate Employees: Teach your team to recognize fake fundraisers and always verify before donating in your company's name.
3. Donate Through Official Channels: Give via verified charity websites rather than clicking unfamiliar email or social media links.
4. Practice Transparency: If donations are publicized, verify the credibility of supported charities.
5. Monitor Donations: Follow up to ensure funds are used as promised; many charities publish impact reports.

Enjoy a Generous, Risk-Free Holiday Season

Holidays are an opportunity to give back—don't let regret replace generosity. By applying smart policies and vigilance, you protect both your donations and your reputation.

Need your team trained to detect scams, fake fundraisers, phishing emails, or fraudulent payment requests?

Contact us at 346-532-3724 or click here to schedule your free 15-Minute Discovery Call today.

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

Braintek

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