Holiday Scams In Disguise: What To Watch For When Donating Online
Scammers don’t take holidays off — in fact, they look forward to them. When emotions run high and giving increases, fraudsters ramp up their efforts. And every year, fake fundraisers spread across social media, e-mail and crowdfunding sites, tricking people and small businesses into donating to causes that aren’t real.
A few years ago, a massive telefunding ring was shut down after investigators uncovered more than 1.3 billion deceptive donation calls and over $110 million stolen from donors.
(Federal Trade Commission)
Researchers at Cornell University found that more than 800 accounts on major platforms
operate active donation scams at any given time, pushing people toward fake fundraisers on Facebook, Instagram and X.
For Houston businesses, even one mistaken donation can do more than waste money. It can tie your company’s name to fraud, weaken trust with clients and partners, and create cybersecurity exposure if the scam is linked to phishing or malicious links.
Here’s how to check whether a fundraiser is legitimate, recognize red flags and keep your business (and goodwill) protected this season.
How To Vet A Fundraiser Before You Donate
A legitimate fundraiser should clearly and confidently explain:
• Who is organizing it, and what is their connection to the person or cause?
• How the money will be used and within what timeline.
• Who controls the withdrawals and whether there is a secure, direct path for funds to reach the recipient.
• Whether close family or friends publicly support or validate the campaign.
If any of this is unclear or avoided, ask questions. Silence or vague answers are a major warning sign.
Red Flags That Often Signal Scams
Take a step back if you notice:
• Misleading, conflicting or obviously false details on the fundraiser page
• Money not being used for the stated purpose
• Impersonation of another person or copying someone else’s tragedy
• Stories that seem overly perfect, dramatic or emotionally manipulative
If multiple warning signs show up, report the fundraiser and do not donate.
Vetting Charities (Not Just Crowdfunds)
Even established charities can have questionable practices. Look for:
• Transparent program descriptions, financial breakdowns and annual reports
• Clear information about what percentage of donations reaches programs
• Charity names that appear in searches alongside words like “fraud,” “scam,” or “complaints”
If information is hard to find or reviews seem concerning, proceed carefully.
Common Tactics Charity Scammers Use
Watch for these red flags — many of which overlap with the cybersecurity scams we see every day in Houston:
• Demands for gift cards, wire transfers or cryptocurrency
• Websites missing https (secure data transmission)
• Pressure to donate immediately
• Claims that you already pledged or donated when you didn’t
Scammers are getting better at making things look real. Even polished websites, friendly messages and professional-looking graphics can hide bad intentions.
Why This Is Important For Your Business
When a company donates — whether publicly or quietly — that act of generosity becomes part of your brand identity. Falling for a fake fundraiser can damage credibility, especially if the scam also includes malware, phishing links or attempts to gather employee information.
The same tactics that appear in charity scams often show up in invoice fraud, fake payment requests and impersonation scams that target businesses. Training your team to spot fraudulent fundraisers also teaches them to catch other common cyberthreats.
How To Protect Your Business (And Your Goodwill)
These best practices help keep your charitable giving safe:
1. Donation Policy For Your Business:
Establish how the company donates and what approvals are required.
2. Employee Awareness:
Teach your team how to recognize fake fundraisers and verify requests before donating under the company name.
3. Use Trusted Channels:
Donate directly on verified charity websites, not through random links shared by e-mail or social media.
4. Transparency:
If your business publicly supports a cause, make sure you’ve verified the organization first.
5. Ongoing Monitoring:
After donating, confirm the funds were used as promised — many charities publish impact updates.
Keep Your Holidays Generous – Not Risky
The holidays are a time to give — not a time to regret a rushed or unsafe donation. A few smart checks protect your business, your money and your reputation.
Want your Houston team trained to spot fake fundraisers, phishing attempts or suspicious payment requests? We can help strengthen your cybersecurity awareness and keep your business safe.
Because the strongest gift you can give your business (and your community) is protection from scams designed to take advantage of your generosity.
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