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Home»Personal Finance»How To Spot GoFundMe Scams In 2025
Personal Finance

How To Spot GoFundMe Scams In 2025

February 12, 2025No Comments5 Mins Read
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Crowdfunding can be a powerful way to bring people together and raise money for a noteworthy cause. GoFundMe is one of many platforms created with that goal in mind.

The platform has grown rapidly since its inception in 2010, and with growth can sometimes come an increased risk of scams. Here’s how the site works — and how to spot cons.

How does GoFundMe work?

GoFundMe is an online crowdfunding platform that leverages social networks to help people raise money for personal or charitable causes. You can start a GoFundMe for yourself, someone else or a charity. Setting up a fundraiser is a multi-step process that involves answering questions about what the fundraiser is for, explaining what it’s about, sharing it with your social network and adding bank information to receive the money.

Although it’s a straightforward process to start a GoFundMe, there are eligibility requirements. In the United States, you must be 18 or over and have a Social Security number, valid U.S. photo ID, residential address, phone number and a U.S. bank account in your name.

GoFundMe has a trust and safety team that works to verify and review fundraisers. The team uses technical tools, machine learning and video and image review to identify misuse.

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Signs of a GoFundMe scam

Even with eligibility requirements and a specialized team, it is still possible for scammers to create fake fundraisers. A fraudulent fundraiser could look like:

  • Misleading or factually incorrect information: Check for incorrect names, addresses, occupations or ages. These clues could point to a scammer impersonating a real person to raise money for a fake cause.

  • Vague fundraisers with few details about the beneficiary or family: The fundraiser should offer solid information about the family, person or organization requesting help. It should also detail the purpose of the fundraiser and how the funds will be used. Sometimes criminals raise money on behalf of a person facing challenges with no intention of giving them the money.

  • A lack of digital presence: Check to see whether you can find an image or video of the fundraiser or beneficiary. Try using Google Reverse Image Search to look for other pictures of the fundraiser beneficiary to help verify their identity.

  • Organizers with new social media accounts and few followers: This can be a red flag indicating a fake account, a fake cause and impersonation.

  • Minimal or no communication from fundraiser organizer: If you try to contact the organizer and don’t get an adequate response, it could be a sign that something is wrong.

  • Signs of impersonation: Check to see if you’ve read the fundraiser story somewhere else before; that could indicate it’s a financial scam.

Reporting GoFundMe scams

If your gut is telling you a fundraiser feels off, take extra precautions before donating.

Contact GoFundMe via its website or email to raise concerns. You can report as someone who has been impersonated or as someone who suspects a fundraiser may be fraudulent.

Donating to a fraudulent fundraiser: In case you donated to a fraudulent fundraiser, the organization has a GoFundMe giving guarantee, which ensures you get a full refund if it’s proven that a fundraiser is a scam. GoFundMe will refund any donation amount up to one year after you make the donation. As an added layer of protection, fundraisers that violate GoFundMe’s terms of service or misuse funds may be temporarily or permanently shut down.

To get a refund, you submit a claim, which will then be investigated by the trust and safety team. Once the investigation is complete, your refund is processed within three to 10 business days.

Beneficiary fraud: If you’re the beneficiary of a fundraiser and haven’t received the money raised, then that’s another reason to file a claim. GoFundMe’s beneficiary guarantee states that you can request a payment as long as the claim is made within a year of the fundraiser creation date and there is evidence of misuse.

Impersonation: If someone impersonated you in a GoFundMe scam, it is possible to report it. One way is to click the “report a fundraiser” button and alert the company that a fundraiser was created without your consent.

General concerns: If you have general concerns, you can fill out a form to report a fundraiser. You’ll be asked for your basic information and the fundraiser URL.

Understanding GoFundMe Fees

GoFundMe operates on a fee structure that includes transaction fees and donations. Users are charged a 2.9% transaction fee along with $0.30 per donation to cover payment processing costs.

The transaction fees are deducted automatically from each donation, eliminating the need for fundraisers to handle separate payments. Donors are not charged extra fees on top of their contributions.

For instance, if you donate $50 to a cause, a total of $1.75 would go towards GoFundMe ($1.45 as transaction fee and $0.30 for processing), and $48.25 would be received by the fundraiser.

GoFundMe also generates revenue through tips added to donations. These tips may support customer service, safety measures, or platform technology.

Automatic tips sometimes lead to confusion among donors as the final payment amount can exceed the initially intended donation. However, donors have the option to adjust or remove the tip amount before finalizing the payment.

Exploring Alternatives to GoFundMe

If you prefer alternative ways to support causes, consider local community initiatives or direct donations to individuals in need. Faith-based organizations and community groups often provide avenues for impactful giving.

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