The holidays bring out generosity, but they also bring out scammers. Many businesses genuinely want to give back, whether through food drives, client-supported causes, or community fundraisers. Unfortunately, bad actors know how to exploit that goodwill.
And when they do, the damage is not just financial. A single fraudulent donation can put your company’s reputation, community standing, and client trust at risk. In a world where brand perception matters, no small or midsize business can afford that hit.
The Rise of Holiday Scam Fundraisers
Recent years have revealed massive fake charity operations targeting generous businesses and individuals.
- One scheme placed more than one billion fake donation calls and collected over $100 million
- Researchers uncovered hundreds of social media accounts running fake fundraisers with stolen photos and emotional stories
These scams are polished and perfectly timed. Small businesses are especially vulnerable because they give with heart but often lack formal donation policies.
How To Vet a Fundraiser Before Donating
Before your business supports a cause, pause and confirm:
- Who is running the fundraiser and what is their connection to the recipient
- What the funds are specifically for and the timeline for use
- Who controls the money and how it will be distributed
- Whether family or friends publicly support the cause
If the answers are unclear, slow down and ask. Legitimate fundraisers welcome transparency. Scammers avoid it.
Red Flags to Watch For
- Stories that feel overly emotional or vague
- No clear explanation of how funds will be used
- Photos or identities that look stolen or copied
- No public updates after donations begin
- Pressure to act immediately
And if someone asks for donations via gift cards, cryptocurrency, or wire transfers, it is almost certainly a scam.
Why This Matters for Your Business
Your giving reflects your values. A donation connected to a scam can cause lasting damage to your brand and community trust. The same tactics used in fake fundraisers, such as urgency, impersonation, and fake websites, also appear in phishing attempts, fake invoices, and business email compromise attacks.
Teaching your team to vet fundraisers also sharpens their fraud detection skills across the business.
How To Protect Your Company While Giving
Create a Company Giving Policy
Define who approves donations, what qualifies, and how verification works.
Educate Your Team
Explain how donation scams operate and encourage verification before giving, especially under the company name.
Use Trusted Channels
Donate directly on a charity’s official website, not through social links or emails.
Verify Before You Promote
If your company publicly supports a cause, confirm legitimacy first.
Follow Up
Legitimate charities provide updates. Track them to ensure your support made an impact.
Keep the Season Generous, Not Regretful
Giving from the heart is a strength. In today’s environment, the smartest gift is a verified one. Whether supporting a food bank, relief fund, or internal charity drive, check first, give confidently, and protect your business while doing good.
Want to train your team to spot scams and fraud attempts? We help Metro Atlanta small businesses build systems that protect their money and reputation from cyber threats.
Book a Free Security Discovery Call.
The best gift this season is trust that cannot be stolen.
