Even in the most charitable seasons, scammers know how to prey on good intentions. And for Salt Lake City insurance agencies, this can do more than drain a donation budget—it can tie your agency’s name to fraud, damage hard-earned client trust, and even open the door to cyberattacks.
A few years back, a massive telefunding scam was exposed that defrauded donors out of $110 million by making over 1.3 billion misleading calls (Federal Trade Commission). More recently, researchers from Cornell University flagged over 800 fake donation accounts on platforms like Facebook and Instagram.
The bottom line? Insurance professionals must vet everything—because scammers aren’t just targeting individuals anymore. They’re coming after businesses like yours, especially those who take pride in community involvement.
Here’s how to protect your agency with clear donation policies, scam awareness, and IT services tailored for Salt Lake City’s insurance industry.
How To Vet A Fundraiser Before Donating
If you or your team are considering donating to a campaign, ask these questions first:
- Who is organizing it, and how are they related to the recipient?
- Where will the money go, and what’s the timeline for use?
- Who can withdraw the funds?
- Do trusted family, friends, or agencies endorse the fundraiser?
If anything feels vague or difficult to verify, that’s your first red flag.
Red Flags That Could Signal Fraud
You wouldn’t let your CSR process a policy without underwriting checks. Don’t let your agency support a fundraiser without the same scrutiny.
Here’s what to look out for:
- False or inconsistent stories
- No transparency around where the money goes
- Emotionally manipulative appeals with no facts to back them up
- Copycat fundraisers or lifted photos from other campaigns
One red flag? Investigate. Multiple? Walk away.
Vetting Registered Charities (Not Just Crowdfunding Campaigns)
Even licensed nonprofits can raise eyebrows. Before supporting one publicly, look for:
- Annual reports, spending transparency, and program results
- A breakdown of how donations are split (programs vs. admin overhead)
- Search results that include terms like "scam," "fraud," or "complaints"
If their financials or reviews don’t hold up? Your agency doesn’t need to risk the affiliation.
Common Tactics Used By Charity Scammers
Whether it’s a bogus veteran’s fund or a fake children’s hospital appeal, the playbook looks familiar:
- Urging donations through gift cards, wire transfers, or crypto
- Sending donation requests from non-secure websites (no HTTPS)
- Using high-pressure tactics like "You already pledged!"
- Exploiting recent news or disasters to create fake urgency
These same tactics are used in phishing emails and wire fraud attacks—the kind that put your agency’s data and client records at risk.
Why This Matters Specifically for Salt Lake City Insurance Agencies
Giving back is baked into our local industry culture. Whether it’s a client tragedy, school fundraiser, or a local disaster relief effort, insurance advisors are often among the first to raise a hand.
But here's the risk: A public donation to a fraudulent cause doesn't just waste money. It can stain your agency's reputation, especially if promoted on social media. Worse, if an employee gives under your business name without vetting it, you could find yourself explaining something you'd never knowingly support.
Scammers are betting on your generosity. Don’t let them win.
How To Protect Your Agency’s Reputation (And Keep Giving)
Protect your staff, your clients, and your agency’s name with a few smart IT and operational policies:
- Create a Clear Donation Policy
Define how, when, and where your agency donates. Set approval levels. Make it part of your compliance checklist.
- Train Your Team
Just like phishing simulations, run briefings on donation scams. Encourage staff to verify fundraisers, especially if using the agency’s name or social accounts.
- Use Only Trusted Channels
Never donate through social media links or random emails. Go directly to a charity’s secure website or approved fundraising platform.
- Public Giving? Triple-Check First
If your agency promotes its giving in marketing, verify everything. You’re putting your brand on the line.
- Follow Up On Larger Donations
If your agency contributes to a major cause, monitor their activity. Reputable charities send receipts and post-use updates.
Don’t Let Scammers Hijack Your Holiday Spirit
Giving back is one of the most meaningful parts of running an agency. But it has to be done wisely.
By putting donation guardrails in place and staying vigilant, your Salt Lake City insurance firm can remain generous and secure.
Need help creating a company-wide policy or training staff to spot scams that go beyond just donations?
Click here to schedule your free network assessment with Qual IT
Because the best gift you can give your agency, your team, and your community is a strong cybersecurity posture and a reputation they can count on.
