Consumer Protection Tuesday: How to Protect Your Holiday Donations from Charity Scams

This post is part of a weekly Tuesday series at Coinbase about the latest consumer protection and security measures for crypto owners.

At Coinbase, we’re on a mission to help update the financial system to make it safer and more secure. While only 0.14% of blockchain transactions are used for illicit activity, and cash remains the preferred medium for illegal transactions, crypto security is always a top priority. Coinbase maintains a robust compliance program, which includes Know Your Customer (KYC) checks, sanctions screenings, suspicious activity reporting, and strong law enforcement partnerships to detect and prevent illicit activity on our platform.

'Tis the Season for Giving

During the holidays, millions of people give to charitable causes—from food drives to disaster relief to international aid. But while donations spike in December, so do charity scams. Criminals prey on our desire to give, especially when we’re short on time or emotionally moved by a plea.

Americans donate billions each year to charities, with many gifts made online or through mobile apps. Unfortunately, this convenience also makes it easier for scammers to slip in. Protecting your donation isn’t just smart, it ensures your gift goes to people who truly need it.

Common Holiday Charity Scams

1. Fake Holiday Charities

Scammers build entire fake organizations, websites, and social profiles to look legitimate. They’ll use emotional language, photos of disaster victims, or even stolen logos to reel you in.

Red flag: No verifiable history, generic mission statements, or vague donation details.

2. Impersonating Real Charities

Fraudsters might pretend to be known charities like the Red Cross or UNICEF, using spoofed emails or websites with minor domain changes (like redcros-help.org instead of redcross.org).

Red flag: Urgent demands for payment or requests via wire transfer or crypto wallet.

3. Fraudulent Crowdfunding Campaigns

On sites like GoFundMe, some scammers set up fake fundraisers, especially after disasters or during the holidays, without any real connection to a cause or individual in need.

Red flag: No transparency about the organizer or beneficiary. Little-to-no proof of need.

4. Phishing Campaigns Posing as Charities

You may get a heartfelt holiday message by email or text with a link to donate. But it could lead to a fake donation portal designed to steal your payment info or crypto.

Red flag: Typos, generic greetings (“Dear donor”), and pressure to “act now.”

How to Donate Safely This Holiday Season

1. Verify Before You Give Search for the charity on trusted databases like Charity Navigator or GuideStar. Most legitimate charities are registered.

2. Use Secure Payment Methods Only donate via official websites using secure checkout (look for HTTPS in the URL). Avoid wire transfers, gift cards, or crypto sent via QR codes unless you completely trust the recipient.

3. Research Fundraisers on Crowdfunding Platforms If you’re giving to a personal campaign, confirm the organizer’s identity and their relationship to the beneficiary. If you can’t, don’t donate.

4. Be Wary of Emotional Appeals Without Details Scammers use stories to manipulate. A real charity will clearly explain how funds are used and provide financial transparency.

5. Report Suspicious Appeals If something feels off, report it to the FTC or the FBI’s Internet Crime Complaint Center (IC3). You can also alert your local authorities.

Give Smart and Make a Real Difference

Your holiday donations can change lives—but only if they reach the right people. In the season of giving, scammers are banking on your generosity. A few extra minutes of research can protect your gift and ensure it supports a real cause.

Stay generous, stay safe, and help spread awareness this holiday season.