Holiday Scams in Disguise: How to Protect Your Wilmington Business from Holiday Donation Scams

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, authorities shut down a massive telefunding fraud. After authorities discovered that the perpetrators had made 1.3 billion deceptive donation calls and collected over $110 million from unsuspecting donors (Federal Trade Commission).

At the same time, academic researchers from Cornell University found that on social media alone, more than 800 accounts operated donation scams, pushed victims toward fake fundraisers over platforms like 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, partners, and your community.

Here’s how to vet fundraisers, spot red flags, and keep your business (and goodwill) safe this season.

How to Vet a Fundraiser Before You Donate

Before sending a dollar, make sure the campaign can answer these clearly:
• Who is organizing this, and what’s their connection to the recipient?
• How exactly will the funds be used, and over what timeline?
• Who controls withdrawals, and is there a clear path for funds to reach the intended recipient?
• Do family or close friends publicly support the campaign?

If any of those are vague or missing, ask for clarification first. Silence or evasive answers are red flags.

Red Flags That Often Signal Donation Scams

If you see any of these, pause and investigate before contributing:
• Misleading or false information on the fundraiser page
• The organizer fails to use the funds for the stated purpose within a reasonable time.
• Impersonation of another person or copying someone else’s story
• Stories that seem too perfect or overly emotional

When you spot multiple warning signs, report the fundraiser and do not donate.

Vetting Charities Beyond Crowdfunding Campaigns

Even established charities can have questionable practices. Look for:
• Transparent financial reports and annual statements
• A clear breakdown of how donations are spent on programs vs. overhead
• A charity name that doesn’t appear in searches alongside “fraud,” “scam,” or “complaints”

If you find little detail or negative reviews, be cautious before donating under your business’s name.

Common Online Charity Scam Tactics During the Holidays

Watch out for these donation fraud tricks:
• Requests for gift cards, wire transfers, or cryptocurrency – legitimate charities accept credit cards or checks
• Websites missing “https” (the “s” means secure data transmission)
• Pressure to donate immediately – urgency is a classic manipulation tactic
• Claims that you already pledged or donated – always double-check before paying

Scammers are clever. Even sleek websites and heartfelt stories can hide malicious intent.

Why Donation Scams Are a Business Cybersecurity Concern

When your business donates publicly or privately, that generosity becomes part of your brand. Fraudsters can tie your generosity to fake causes.

The same psychological tactics used in charity scams – urgency, impersonation, fake websites – also drive phishing and invoice fraud. Training employees to recognize donation scams strengthens your defenses against larger cybersecurity threats.

How Wilmington Businesses Can Protect Their Reputation and Donations

Create a Business Donation Policy: Define approved donation methods and establish internal review or approval thresholds.
Educate Employees: Encourage your team to verify charities before donating, especially if representing your company.
Use Trusted Channels: Donate directly through verified charity websites, not via links in emails or social media posts.
Publicize Responsibly: When announcing donations, confirm legitimacy to avoid inadvertently endorsing a scam.
Monitor After Donating: Follow up on the charity’s impact reports or updates to confirm that your funds were used appropriately.

Stay Cyber Aware While You Give Back

Generosity should never be risky. These scams are designed to exploit emotion and urgency – but awareness and verification protect both your finances and your reputation.

Keep Your Holidays Generous – Not Risky

The holidays are a time to give, not to recover from fraud. Smart checks and clear policies protect your business, your money, and your community trust.

Want to make sure your team knows how to spot these scams – whether it’s a fake fundraiser, a phishing email, or a fraudulent invoice?

Book Your Free Discovery Call with ACS

Because the best gift you can give your business this holiday season is trust that can’t be stolen.