The holidays bring out generosity across East Tennessee—but they also bring out scammers.
From fake online fundraisers to impersonated charities, cybercriminals prey on good intentions during the giving season. Every year, businesses and individuals lose millions through fake donation campaigns.
For small business owners, one bad donation can do more than waste money—it can tie your name to fraud, damage community trust, and even expose your business to phishing or data theft.
Here’s how to protect your goodwill (and your wallet) with smart giving practices this holiday season.
Real Donation Scams and Their Impact
A few years ago, a major telefunding operation made 1.3 billion fake donation calls, collecting over $110 million from unsuspecting donors. Meanwhile, researchers from Cornell University uncovered hundreds of fake charity accounts on Facebook, X, and Instagram, pushing victims toward fraudulent fundraisers.
Locally, Tennessee businesses have also been targeted through fake GoFundMe pages and “community relief” scams that impersonate legitimate charities.
The lesson: Every business—especially those known for community involvement—must double-check where donations are going.
How to Vet Fundraisers Before You Give
Before donating, ask these key questions:
✅ Who is organizing this fundraiser, and how are they connected to the recipient?
✅ How will the funds be used, and over what timeline?
✅ Who controls the money and handles withdrawals?
✅ Do close contacts (family, friends, or verified partners) publicly support the campaign?
If the answers are vague—or you get silence—pause before donating. Reputable causes are transparent.
Red Flags That Signal Fraud
Keep an eye out for these warning signs:
🚩 Emotional or “too perfect” stories meant to trigger quick giving
🚩 Fundraisers using misleading or fake details
🚩 Pressure to donate right now
🚩 Unverified social media accounts with copied stories
🚩 Demands for donations via gift cards, wire transfer, or crypto
If something feels off, it probably is.
Verifying Legitimate Charities
Even established charities can have shady practices. Do a quick background check:
- Review financial reports and program details on their website.
- Search the charity name with words like “fraud” or “complaint.”
- Confirm they use secure sites (https) and accept safe payment methods (credit cards or checks).
Sites like Charity Navigator, BBB Wise Giving Alliance, and GuideStar can help you verify organizations before you give.
Why It Matters for Your Business
Generosity builds your brand—but a bad donation can break trust.
If your company donates publicly, employees or customers may associate your name with a fraudulent campaign. And the same scam tactics used in fake fundraisers—impersonation, urgency, false invoices—also appear in business-targeted cyberattacks.
That’s why protecting your giving strategy is part of nonprofit cybersecurity and overall business IT safety.
How to Protect Your Business (and Your Reputation)
✅ Create a Donation Policy: Decide how and where your business donates, and require manager approval for contributions.
✅ Train Your Team: Educate employees about fake fundraisers and phishing tactics.
✅ Use Trusted Channels: Donate directly on verified charity websites, never through links on social media or email.
✅ Follow Up: After donating, confirm your contribution was received and used as intended.
With the right approach, your business can give confidently—and safely.
Final Thoughts
East Tennessee businesses are known for giving back. Don’t let scammers take advantage of your generosity.
By verifying fundraisers, securing donations, and training your team, you protect your business, your community, and your good name.
👉 Want to ensure your staff can spot scams—whether it’s a fake charity, a phishing email, or a fraudulent payment request?
Schedule your free cybersecurity consultation today and keep your business safe this holiday season.
