Fraud 101: Holiday & Charity Scams

The holidays are a time for giving. But unfortunately, they’re also a time when holiday charity scams spike.

Many legitimate charities increase their fundraising during this season, and scammers see that as an opportunity to trick generous donors. The same pattern often appears after natural disasters or emergencies, when fraudsters set up fake charities to divert donations meant for real relief efforts.

Scam solicitations can come in many forms — through the mail, over the phone, in your social media feed, or even at your front door. Before you open your wallet, take a moment to verify who’s asking. Even if the story tugs at your heartstrings, a little extra caution can protect both your money and the people you truly want to help.

Here are some key tips to avoid holiday charity scams:

1. Do Your Due Diligence

Scammers often use names that sound like well-known charities. For example, someone might ask you to give to Wounded Warriors Family Aid — when the real organization is Wounded Warriors Family Support. Always double-check the name of the charity and research unfamiliar organizations before donating. A quick online search or a visit to a site like charitynavigator.org or give.org can help confirm legitimacy.

2. Choose Your Charity Carefully

When giving, look for charities that spend the majority of their funds on programs and services — not overhead. As a rule of thumb, if more than half of your donation goes toward administrative costs, it’s a red flag. Transparency is key: trustworthy charities make it easy to find their financials and impact reports.

3. Give Through Official Channels

Fraudsters can spoof phone numbers or create fake websites and social media accounts that look nearly identical to real ones. To protect yourself, always initiate the donation yourself:

• Don’t give payment information to someone who called you. Instead, call the charity directly using the number on its official website.
• Don’t click on links in unsolicited emails or messages. Type the organization’s URL directly into your browser or find it through a search engine.
• Avoid donating through wire transfers, gift cards, or cryptocurrency. Legitimate charities don’t request these payment methods.

4. Report Suspected Charity Scams

If you believe you’ve been targeted by a holiday giving scam, report it to:

• The Federal Trade Commission (FTC) at reportfraud.ftc.gov
• The Iowa Attorney General’s Office
• Your financial institution, especially if you’ve shared payment information

Your report could help stop scammers from preying on others during the season of giving.

Protect Yourself Year-Round

Fraud doesn’t take holidays off. Click below for more tips on recognizing scams, keeping your accounts secure, and protecting your financial well-being.

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