Holiday Scams in Disguise: How to Keep Your Generosity Safe This Season
The holidays bring out the best in people—but they also bring out the scammers. When emotions are high, giving increases, and businesses want to do good, fraudsters know it’s their moment to strike.
Not long ago, investigators shut down a massive telefunding scheme where scammers made 1.3 billion deceptive donation calls and pulled in more than $110 million from well-meaning donors. And on social media, researchers found more than 800 accounts running fake fundraisers across platforms like Facebook, Instagram and X.
When you’re a small business, falling for one of these traps doesn’t just hurt your wallet, it can damage your reputation and break the trust you’ve worked hard to build with clients, partners and your community.
Here’s how to protect your business, give confidently and keep your goodwill going where it truly matters.
How To Check If a Fundraiser Is Legit
A trustworthy fundraiser should clearly explain:
- Who is behind the campaign and how they’re connected to the person or cause.
• How the money will be used—and when.
• Who is able to withdraw the funds.
• Whether close friends or family publicly support the fundraiser.
If any of these details feel vague, confusing or conveniently missing, ask questions. A legitimate organizer will welcome transparency. Evasive answers or silence? That’s a red flag.
Signs a Fundraiser Might Be a Scam
Pause and dig deeper if you notice:
- Suspicious or exaggerated details in the story.
• Money not being used as promised.
• Someone impersonating another person or copying a real fundraiser.
• Stories designed to push emotional buttons without offering facts.
If you spot several of these signs, report the campaign and steer clear.
Vetting Charities (Not Just Crowdfunds)
Even long-standing charities can have questionable practices. Before giving, look for:
- Clear program descriptions, financials and annual reports.
• Transparency on how donations are allocated.
• Search results that don’t include phrases like “fraud,” “scam,” or “complaints.”
If information is hard to find—or reviews raise concerns—it’s worth reconsidering.
Common Tricks Scammers Use
Fraudsters often rely on the same patterns. Be cautious of:
- Requests to donate using gift cards, wire transfers or cryptocurrency.
• Websites without the secure “https” at the start of the URL.
• High-pressure tactics urging you to donate immediately.
• Messages claiming you already pledged money—especially if you don’t remember doing so.
Even a polished website or a heartfelt story can be fake. Scammers have become very convincing.
Why This Matters for Your Business
Charitable giving is part of your brand story. When your business donates, people associate your name with the causes you support. A single fraudulent donation can tie your brand to a scam—and even create doubts about your internal security practices.
What’s more, the tactics used in charity scams mirror other forms of business fraud like phishing attacks, fake invoices and social engineering. Teaching your team how to spot fake fundraisers strengthens their ability to catch these threats too.
How To Keep Your Business Safe (While Still Giving Back)
Here’s how to ensure your generosity stays secure:
- Create a Donation Policy: Set guidelines for how your company donates and who approves contributions.
- Educate Your Team: Encourage employees to verify fundraisers, especially when donating under the business name.
- Use Trusted Channels: Always donate through official charity websites—not links from emails or social media.
- Verify Before You Promote: If you publicly support a charity, make sure you’ve double-checked its legitimacy.
- Monitor Your Donations: After giving them, follow up. Many charities share updates or impact reports so you can confirm the funds went where intended.
Keep the Holidays Generous—Not Risky
The holidays should be a time of giving, not second-guessing. With a few smart precautions, you can protect your business, support real causes and maintain the trust of the people who count on you.
And remember, when your team can spot fake fundraisers, they’re better prepared to spot suspicious emails, bogus invoices and other fraud attempts too.
Safeguard your generosity—because trust is one gift no scammer should ever be able to steal.