Even in good times, scammers circle around generosity. But during the holidays, when giving increases and emotions run high, they truly pounce.

A few years ago, a massive telefunding fraud was shut down after authorities discovered the perpetrators had made 1.3 billion deceptive donation calls and collected over $110 million from unsuspecting donors (FTC).

At the same time, researchers from Cornell University found that over 800 scam accounts were actively pushing fake donation drives on Facebook, X, and Instagram.

For a small business, one misstep in charitable giving can do more than lose money — it can connect your name to fraud, damage your reputation, and erode trust with clients and partners.

How To Vet A Fundraiser Before You Donate

Before you give, ask these questions:

  • Who is organizing this, and what’s their connection to the recipient?

  • How will the funds be used, and when?

  • Who’s controlling withdrawals — is it transparent?

  • Are the recipient’s family and friends publicly supporting the campaign?

If you don’t get clear answers, don’t donate.

Red Flags That Signal Scam Activity

Scam fundraisers often include:

  • Misleading or false information on the page

  • Funds not used for the stated purpose

  • Impersonation or copycat campaigns

  • Stories designed to manipulate emotion with no verification

If something feels off, investigate before giving.

Vetting Charities – Not Just Crowdfunds

Even official-sounding charities can be questionable. Here's how to check:

  • Look for program descriptions, annual reports, and clear financials

  • Review how much goes to programs vs. administrative costs

  • Search the charity name with terms like “scam” or “complaint”

If transparency is lacking, walk away.

Common Charity Scam Tactics

Scammers often use:

  • Urgency to pressure you into giving

  • Crypto, gift cards, or wire transfers as payment (a red flag)

  • Phony websites without https encryption

  • Claims you already pledged or donated

These are the same tactics used in business-targeted attacks like phishing or ransomware — which makes educating your team even more vital. Learn more about ransomware threats here.

Why This Matters For Your Business

A charitable donation gone wrong doesn’t just hurt your wallet. It can:

  • Expose your business to brand risk

  • Cause internal confusion over giving policies

  • Make your team a target for similar scam tactics

Implementing secure donation practices is also great cybersecurity training. You can also sign up for our Cybersecurity Tip of the Week to keep your team informed.

How To Protect Your Business (And Your Goodwill)

  • Create a donation policy that outlines how and where your company donates

  • Train your employees to verify charities and fundraisers before donating under the business name

  • Donate directly via official websites — never through social media links or suspicious emails

  • Monitor how funds are used post-donation (check for published reports)

  • Verify any charity you promote under your brand to avoid reputational risk

Keep Your Holidays Generous — Not Risky

This holiday season, let generosity be guided by smart cybersecurity practices. With the right policies and awareness, your business can give safely and build goodwill — without becoming a target.

Want to make sure your team knows how to spot fake fundraisers, phishing attempts, and other scams? Schedule a free 10-minute discovery call with Lazer IT Consultants and we’ll walk you through how to protect your business this season — and every season after.