You may see a post on social media announcing the death of someone in your network, with a link to an obituary and a request for donations to a charity the deceased supported. Or you may receive a moving message asking for help for a family after a house fire or to cover a life‑threatening medical emergency, with a link to a crowdfunding page. Sometimes local groups share pleas for donations after a natural disaster strikes a community you once lived in.
These situations are often real and heartbreaking, but they are also frequently exploited. Scammers are increasingly skilled at turning real tragedy into convincing appeals, using public information and social engineering tools to create believable campaigns that steer donations away from victims and toward criminals.
“Scammers target the human desire to help,” says Julie Kuzmic, head of consumer advocacy and compliance for a credit agency. They exploit two main vulnerabilities: familiarity with a person or community, and the urgency people feel to support a cause quickly.
Warning signs to watch for
If you feel moved to help, pause and look for red flags. Fraudulent fundraising appeals often display one or more warning signs. Watch for these indicators before you donate:
- Details that don’t fully match what you know. Dates, names or other specifics may be slightly off. Scammers and their AI tools are getting better at mimicking legitimate language, but small inconsistencies are common.
- A charity name that’s just slightly different. Scammers will register names, domains or pages that closely resemble reputable charities. Website colours, logos and layouts may look nearly identical at first glance.
- Unusual add‑ons or upsells. Fundraisers may offer optional extras—such as a paid “memorial candle” or premium tribute—designed to increase the donation amount. Legitimate fundraisers make their optional items clear and reasonable.
- A sense of urgent pressure. Scammers often insist funds are needed immediately or claim a tight deadline. This rush is designed to prevent donors from verifying the request or seeking advice.
- Requests for strange payment methods. Be suspicious if donors are asked to send cryptocurrency, gift cards, prepaid debit cards, cash collected by an unknown person, or other unconventional methods. Legitimate charities and verified crowdfunding platforms typically accept credit cards, bank transfers, or established payment processors.
- Links that don’t match the organization’s official site. If a post links to a page that isn’t found on the charity’s main website, or the domain in the URL looks odd, that’s a major warning sign.
Before donating, take a moment to independently verify the campaign. Search the charity’s official website for mention of the fundraiser, check the social media accounts of family members or the organization, and ask mutual contacts if they’ve been informed through official channels. A quick check can prevent well‑intentioned donations from going astray.
What to do if you discover a charity fraud
Crowdfunding platforms and funeral homes are sometimes used by fraudsters to give their appeals a veneer of legitimacy. While many platforms have verification processes, the volume of campaigns makes it difficult to catch every fraudulent fundraiser quickly.
If you suspect a fundraising appeal is fraudulent, follow these steps:
- Stop donating immediately. Do not provide further payment information or share the campaign.
- Preserve evidence. Take screenshots of the post or fundraiser, including URLs, usernames and messages. Note dates and any payment instructions provided.
- Contact the platform and the payment provider. Report the campaign to the crowdfunding site and contact your bank or credit card company if you made a payment. They may be able to reverse charges or flag the transaction.
- Notify authorities and consumer protection bodies. Report the scam to your national anti‑fraud centre and to local police. Reporting helps investigators and can protect others from being targeted.
- Tell your network. Share your concerns with friends, family and online groups where the campaign appeared. Warnings from people who know the community can stop the scam from spreading.
- Check your accounts. Monitor bank and credit accounts for unauthorized activity and consider placing fraud alerts if you suspect personal information was compromised.
People who fall victim to these scams often feel embarrassed and may say nothing, but speaking up is essential. Reporting fraud and warning others reduces the pool of potential victims and increases the chance the scam will be stopped.
Keep a step ahead of the scam artists
In addition to careful verification and prompt reporting, there are practical tools and habits that can reduce your risk. Use reputable crowdfunding platforms and donate directly through a verified charity’s official website whenever possible. Look for secure site indicators (for example, an HTTPS connection) and review the fundraiser’s history or the organizer’s profile. Ask for official documentation or tax receipt information if appropriate.
For extra protection, consider digital security tools that flag fraudulent websites and help monitor for signs of identity theft. Some multi‑feature protection services include device security to warn about unsafe sites, password managers, social media monitoring, VPNs, credit monitoring and identity restoration services. These services can add a layer of defence, but the most effective protection is still cautious behaviour: stop, verify and talk to others before you act.
Newsletter
Get free MoneySense financial tips, news & advice in your inbox.
Read more about fraud and scams:
- Scammers want your retirement—here’s how to protect yourself
- AI‑driven scams target borrowers: how to spot fraudulent lenders
- How to protect yourself from identity fraud in Canada
- How to protect your bank account