November 16, 2025
Scammers thrive around generosity all year, but they become especially aggressive during the holiday season, when giving is at its peak and emotions run high.
Recently, a huge telefunding scam was uncovered, where fraudsters made an astonishing 1.3 billion deceptive calls and bilked over $110 million from well-meaning donors, according to the Federal Trade Commission.
Meanwhile, research by Cornell University revealed that over 800 fraudulent social media accounts run donation scams, directing victims to false fundraisers across platforms like Facebook, X, and Instagram.
For small businesses, one wrong move in charitable donations doesn't just mean financial loss — it risks associating your brand with fraud, harming your reputation and undermining trust with customers, partners, and the community.
Here's your essential guide to verifying fundraisers, recognizing warning signs, and protecting your business's generosity this season.
Essential Steps to Vet Fundraisers Before Donating
A trustworthy fundraiser will provide clear answers to these vital questions:
- Who is behind the fundraiser, and what is their relationship to the beneficiary?
- How will the funds be allocated and over what period?
- Who manages the withdrawals, ensuring the money reaches the intended recipient?
- Are close family or friends publicly endorsing the campaign?
If any answers are unclear or missing, demand clarification. Avoid any fundraiser that responds with silence or evasiveness—it's a major red flag.
Key Red Flags That Signal Possible Scams
Be cautious if you notice:
- False or deceptive information presented on the fundraiser's page
- Funds are not being deployed quickly or as claimed
- The fundraiser impersonates someone or copies another's story
- Stories that feel suspiciously perfect or overly emotional to manipulate you
Spotting several of these signs? Report the fundraiser immediately and do not contribute.
How to Scrutinize Established Charities
Even recognized charities can have questionable practices. Look for:
- Clear, detailed program descriptions, financials, and annual reports
- Transparency on how much donation dollars support programs vs. overhead
- Search charity names alongside terms like "fraud," "scam," or "complaints" to check their reputation
Inadequate details or negative feedback should raise serious concerns.
Common Manipulative Tactics Used by Charity Scammers
Watch for these red flags:
- Requests to donate via gift cards, wire transfers, or cryptocurrency — legitimate causes typically accept credit cards or checks.
- Web addresses lacking HTTPS (the "s" means secure data transmission).
- Urgency tactics pushing you to donate immediately, a common ploy to prevent thoughtful decisions.
- Claims that you've already pledged or donated when you haven't — always double-check before giving.
Beware: even professionally designed sites and polished messages can mask fraudulent intentions.
Why Protecting Your Business Matters
Your business's charitable activities shape your reputation. A donation to a scam, or employees donating under your company's name without vigilance, can tarnish your brand with association to fraud.
Moreover, scammers often apply the same deceitful tactics — urgency, impersonation, fake websites — to target businesses through phishing, invoice fraud, and wire transfer scams. Training your team to identify suspicious fundraisers empowers them to recognize a wide array of fraud attempts.
Smart Strategies to Safeguard Your Business and Charitable Impact
Implement these proven measures to ensure your donations are secure and meaningful:
- Establish a Donation Policy: Define your company's donation process, including approval limits.
- Raise Employee Awareness: Train your team to identify fake fundraisers and verify causes before donating under your brand.
- Utilize Trusted Platforms: Contribute directly through official charity websites rather than email or social media links.
- Maintain Transparency: If your company publicly shares its donations, verify the charity's legitimacy beforehand.
- Monitor Results: Follow up post-donation to ensure funds are used as promised; many charities release impact reports.
Ensure Your Holiday Giving Remains Generous—and Risk-Free
Holiday giving should bring joy, not regrets. By adopting smart verification steps and clear policies, you protect both your funds and your business reputation.
Want your team to confidently identify scams—whether fake fundraisers, phishing emails, or fraudulent payment requests?
Call us at 1300 765 014 or click here to book your free 15-Minute Discovery Call today.
Because the most valuable gift for your business and community is trust that lasts.
