The holiday season is a time for giving — but unfortunately, it’s also prime time for cybercriminals. Scammers know that emotions run high and generosity is at its peak, and they use that to their advantage.
In fact, a massive telefunding fraud shut down by the Federal Trade Commission revealed scammers made 1.3 billion deceptive donation calls, stealing over $110 million from unsuspecting donors. Researchers at Cornell University also discovered more than 800 fake donation accounts running on social media platforms like Facebook, X, and Instagram.
For small businesses in Louisville, KY and surrounding areas, a single misstep in charitable giving can do more than waste money — it can harm your reputation, damage client trust, and even expose your network to cyberattacks.
Here’s how to donate safely this holiday season while protecting your business, your brand, and your goodwill.
🎁 How to Vet a Fundraiser Before You Donate
Before you or your business contributes to any fundraiser, make sure these key questions are clearly answered:
- Who is organizing it? Is their connection to the recipient legitimate and transparent?
- How will the funds be used? Can they provide a clear breakdown and timeline?
- Who controls the withdrawals? Is there accountability for how funds are distributed?
- Is there public support? Do friends, family, or verified contacts of the recipient confirm its legitimacy?
If any of these details are missing or vague, pause and verify. A legitimate charity will always welcome questions and provide transparency. Silence or defensiveness is a major red flag.
🚩 Red Flags That Signal a Scam
These warning signs often point to fraudulent campaigns:
- Inaccurate or misleading details on the fundraiser page
- Funds that are never used for their stated purpose
- Copy-and-paste stories or impersonation of another fundraiser
- Emotional manipulation that pressures you to act quickly
If you spot multiple red flags, report the fundraiser and avoid donating.
🕵️ Vetting Legitimate Charities (Not Just Crowdfunds)
Even well-known charities can have questionable practices. Protect your business’s goodwill by checking:
- Transparent financial reports and donation breakdowns
- Clear disclosures about program expenses vs. administrative costs
- Google results for the charity’s name combined with terms like “fraud,” “complaints,” or “scam”
If information is hard to find or reviews seem off, think twice before you give.
⚠️ Common Tactics Holiday Charity Scammers Use
Cybercriminals know how to make fake donation sites look polished and convincing. Look out for these common tactics:
- Requests for donations via gift cards, wire transfers, or cryptocurrency
- Websites missing HTTPS (no padlock icon in the address bar)
- Urgent pleas like “donate now” or “limited time to help”
- Claims that you “already pledged” when you didn’t
Always verify through the official charity website or use a reputable giving platform — never click links from unsolicited e-mails or social media messages.
💼 Why This Matters for Your Business
For small and midsize businesses, charitable giving reflects your brand’s values. A single donation to a fraudulent cause can:
- Associate your company’s name with a scam
- Damage community trust
- Expose employee and financial data to cybercriminals
Even worse, scammers use the same urgency and impersonation tactics in business e-mail compromise, phishing, and wire fraud scams. Training your employees to spot fake fundraisers is also training them to recognize cyber threats.
🛡️ How to Protect Your Business and Your Goodwill
Service Solutions Inc., a trusted cybersecurity partner serving Louisville, KY and the tri-state region, recommends the following steps:
- Create a Donation Policy: Define how and where your business donates, including approval thresholds for larger contributions.
- Train Your Team: Educate employees on recognizing scams, fake fundraisers, and phishing attempts — especially before the holidays.
- Use Trusted Channels: Only donate through verified charity websites, never through links in texts or e-mails.
- Verify Publicly Supported Charities: If your business shares donations publicly, double-check the organization’s legitimacy first.
- Monitor Results: After donating, confirm that the funds are being used as promised.
🎄 Keep Your Holidays Generous – and Secure
Generosity should be celebrated — not exploited. A few smart policies and basic cybersecurity awareness can help your business give confidently while protecting your reputation and finances.
If you want to make sure your team can spot scams — from fake fundraisers to phishing e-mails — Service Solutions Inc. is here to help.
📞 Schedule your FREE Discovery Call at www.servicesolutions.us/discovery today and let’s ensure your employees, your data, and your reputation stay safe this holiday season.
Because the best gift you can give your business — and your community — is trust that can’t be stolen.
