Holiday Scams In Disguise: What Every Business Should Know Before Donating Online.

The 10-Second Overview

During the holidays, scammers hide behind fake charities and fundraisers that look real. This article shows business owners how to vet donation requests, spot classic red flags, verify charities before sending money, and put simple policies in place so generosity doesn’t turn into financial loss or brand damage.

The holidays bring out the best in people — and unfortunately, the worst in scammers. As charitable giving increases and emotions run high, cybercriminals use the season to prey on generosity.

A few years ago, the FTC uncovered a shocking telefunding scam involving 1.3 billion deceptive donation calls, stealing more than $110 million from everyday donors (source: Federal Trade Comm ission). And it’s not only phone scams. Researchers at Cornell University found hundreds of fake fundraising accounts on platforms like Facebook, X, and Instagram, all designed to trick people into giving to causes that never existed.

For small businesses, a single mistake isn’t just a financial loss. As we explained in The Holiday Scam That Cost One Company $60 Million, scams can escalate quickly and lead to devastating financial and reputational damage.

Here’s how to protect your business, your employees, and your goodwill this holiday season.

How To Vet A Fundraiser Before Hitting “Donate”

A legitimate fundraiser should clearly answer:

• Who is organizing it, and what is their real connection to the recipient?

• How exactly will the money be used — and over what timeline?

• Who controls the withdrawals?

• Do people close to the recipient publicly validate the campaign?

If you can’t verify these basics, pause and ask questions. Evasive or vague answers are a major red flag.

Red Flags That Often Signal Scams

Look out for these warning signs:

• False or misleading details on the fundraiser page

• Funds not being used for the stated purpose

• Impersonation or copied stories

• Dramatically emotional narratives designed to bypass logic

If you spot more than one of these — do not donate, and report the fundraiser.

Vetting Charities (Not Just Crowdfunds)

Even well-known nonprofits can have questionable practices. Before donating:

• Look for transparent financials, project descriptions, and annual reports

• Check how much of each dollar goes to actual programs

• Search the charity name with terms like “fraud” or “complaints”

A legitimate charity will always be transparent. If you’re unsure how to perform a quick safety check, see the verification tips in our article The Holiday Scam That Cost One Company $60 Million, where we cover additional steps to validate organizations before donating. For extra safety, you can use the IRS Tax-Exempt Organization Search tool to confirm a charity’s status before donating:

Common Tactics Charity Scammers Use

These are classic scam indicators:

• Requests for gift cards, wire transfers, or crypto

• Websites missing https encryption

• “Donate now or else” urgency

• Claims that you already pledged money

• Links delivered through text messages or social media DMs

These tactics often overlap with more sophisticated cyberattacks, including phishing attempts and spoofed payment requests, which we break down in detail in our post Cybercriminals Don’t Take Vacations – Here’s How Small Businesses Can Stay Protected. If it feels rushed or unusual, slow down.

Why This Matters For Your Business

When your business donates — whether publicly or internally — that generosity becomes part of your brand. If the charity turns out to be fraudulent, your company’s name can become wrapped up in the story.

Even more importantly, the same tactics used in charity scams show up in phishing attacks, invoice fraud, and wire-transfer scams. Teaching your team to spot fake fundraisers helps them recognize broader cyberthreats before they cause real damage.

How To Protect Your Business (And Your Reputation)

1. Create a Donation Policy: Define what types of causes you support and who approves donations.

2. Train Employees: Encourage them to verify fundraisers, especially if donating in your company’s name.

3. Use Official Channels: Always donate through the charity’s verified website. To confirm a charity’s legitimacy, tools like Charity Navigator offer ratings, financial transparency details, and fraud alerts:

4. Verify Before Publicizing: Make sure the charities you highlight on social media are legitimate.

5. Monitor After Donating: Many organizations publish reports showing how donations were used.

These safeguards align closely with the cybersecurity best practices we recommend to clients every day. If you want help training your team to spot fraud — whether it’s a fake fundraiser, a phishing email, or a spoofed payment request — our Cybersecurity Awareness Training can help your employees stay safe, confident, and better equipped to reduce risk.

Keep Your Holidays Generous — Without The Risk

Giving back is one of the best parts of the season. A few smart checks can ensure your generosity goes exactly where you intend — not into a scammer’s wallet.

If you want help training your team to spot fraud — whether it’s a fake fundraiser, a phishing e-mail, or a spoofed payment request — we’re here to help. Book your free discovery call here.

Because the best gift you can give your business is security and trust that can’t be stolen.

FAQ 1 – How do scammers disguise holiday donation fraud as legitimate giving? Scammers copy real stories, impersonate charities, or spin up convincing crowdfunding pages that play on emotion and urgency. They often pressure you to donate quickly, use vague details about how funds will be used, and steer you toward risky payment methods such as gift cards, wire transfers, or crypto.

FAQ 2 – What steps should my business take before donating in the company’s name? Create a basic donation policy, then verify every request. Look up the charity independently, confirm its registration and financial transparency, and check for complaints or fraud reports. For internal approvals, require at least one additional reviewer—usually someone in finance or leadership—before any company money is sent.

FAQ 3 – Why does training employees on charity scams also improve cybersecurity? The same tactics used in fake fundraisers—urgency, emotional pressure, spoofed identities, and misleading links—also appear in phishing emails, invoice fraud, and wire-transfer scams. Teaching employees to slow down, ask questions, and verify requests helps them catch a wide range of cyberthreats before they cause real damage.

About the Author

Victor Parrish has spent more than three decades helping business owners apply the right technology to improve security, efficiency, and day-to-day operations. As part of the team at We Do IT USA, he partners with small businesses to deliver straightforward, practical guidance on staying secure and productive in an ever-changing digital world.