Holiday Scams In Disguise: What To Watch Out For When Donating Online

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, a massive telefunding fraud was shut down after authorities discovered 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, researchers from Cornell University found that on social media alone, more than 800 accounts operated donation scams, pushing victims toward fake fundraisers over platforms like Facebook, X, and Instagram.

For small businesses across Richmond and Central Virginia, 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

A legitimate fundraiser should 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 is controlling withdrawals? Is there a clear path for funds to reach their target?
  
• Do close contacts of the recipient (family, friends) publicly support the campaign?
  

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

Local tip: Before contributing to a cause that claims to help families or businesses "in the Richmond area," confirm that the organizer actually has local ties — many recent scams have impersonated Central Virginia-based nonprofits to appear legitimate.

Red Flags That Often Signal Scams

If you see any of these, pause and investigate:

• Misleading or patently false information on the fundraiser page
  
• Funds not being used for the stated purpose in a reasonable time frame
  
• Impersonation of another person or copying someone else's story
  
• Stories that seem too perfect or emotionally manipulative
  

When you spot multiple warning signs, report the fundraiser and don't donate.

Vetting Charities (Not Just Crowdfunds)

Even established charities can have questionable practices. Here's what to look for:

• Transparent program descriptions, financial breakdowns, and annual reports
  
• Clear information about how much of each donation goes to programs vs. overhead
  
• Charity names that appear in searches with words like "fraud," "scam," or "complaints"
  

A lack of detail or negative reviews should spark caution. For Richmond donors, verify listings through the Virginia Department of Agriculture and Consumer Services (VDACS) or trusted databases like GuideStar before giving.

Common Tactics Charity Scammers Use

Watch out for:

• Demands to donate via gift cards, wire transfers, or crypto - legitimate charities accept credit cards or checks.
  
• Websites missing "https" (look for the "s") - that means insecure data transmission.
  
• Pressure to donate right away - urgency is a trick to stop you from thinking.
  
• Claims you already pledged or gave without remembering - always double-check before you pay.
  

Scammers are clever. Even polished websites and thoughtful-sounding headlines may hide malicious intent.

Why This Matters for Your Business

When your business gives to charity - publicly or privately - that generosity becomes part of your brand. A donation to a scam, or even an employee giving under your company name, can drag your brand into a fraud story.

Worse yet: the same tactics used in charity scams — urgency, impersonation, and phony websites — are also behind phishing, invoice fraud, and wire-transfer scams that target Richmond businesses every holiday season.

Teaching your team to spot fake fundraisers is training them to recognize business fraud, too.

How to Protect Your Business (and Your Goodwill)

1. Donation Policy for Your Business: Define how and where the company will donate, and set approval thresholds.
   
2. Employee Awareness: Educate your team on fake fundraisers. Encourage them to verify before donating or sharing under the company name.
   
3. Use Trusted Channels: Donate directly through verified charity websites, not through random links in emails or social posts.
   
4. Transparency: If your business publicizes that it donates, confirm the legitimacy of any charity you endorse.
   
5. Ongoing Monitoring: After donating, check that funds are used as promised. Many reputable organizations share annual or quarterly impact reports.
   

Local addition: Many Richmond-based nonprofits (like Feed More, United Way of Greater Richmond & Petersburg, and local hospital foundations) provide detailed transparency reports online — a great benchmark for vetting others.

Keep Your Holidays Generous - Not Risky

The holidays are a time to give back, not to regret where your goodwill went. Smart checks and clear policies protect both your money and your reputation.

Want to make sure your team knows how to spot these scams — whether it's a fake fundraiser, a phishing email, or a bogus payment request?

Book your free discovery call with BEL Network Integration & Support (BELNIS). Because the best gift you can give your business — and your community — is trust that can't be taken.