Philanthropy has always attracted fraudsters — fake charities, spoofed donor names, wire transfer scams. But with the rise of generative AI and deepfake technology, these schemes are evolving faster than most nonprofits can keep up.

Criminals no longer need sophisticated skills or insider access. Cheap AI tools can now generate:

• Deepfake donor voices requesting urgent wire transfers
• Realistic fake nonprofit websites to harvest donations and data
• AI-generated faces for “board members” who don’t exist
• Synthetic documents like 501(c)(3) approval letters and grant reports

The result? Scams that are harder to detect and more financially devastating than ever before.

Why Philanthropy Is a Prime Target

Fraudsters love the nonprofit sector because:

• Foundations move large sums quickly
• Many organizations lack dedicated cybersecurity staff
• Trust-based relationships reduce scrutiny
• Verification processes are often manual or inconsistent

Add AI to the mix, and that trust becomes a vulnerability.

Deepfake Scenarios Already Happening

Fake nonprofits set up to scam the general public out of their money have been around for a long time. But AI deepfakes are making them much harder to discern.  For example, the deadly flooding in Texas this past July resulted in several online AI deepfake pictures and videos that – quite convincingly – showcased “celebrities” rushing in to assist with the devastation, all as part of an effort to entice victims into donating to help. But now we are also seeing AI being used to scam legitimate nonprofits directly.

Here are a handful of the deepfake scams already on the scene:

1. “Voice of the CEO” transfer requests
   Attackers clone the voice of a foundation leader from a public speech or podcast to authorize fraudulent payments.
2. Fake grantee organizations
   Scammers generate professional-looking proposals, reports, and LinkedIn profiles to secure grants.
3. Donor identity spoofing
   Cybercriminals impersonate high-net-worth individuals to extract acknowledgment letters, donor lists, or sensitive data.
4. Fabricated evidence of impact
   Generative media tools create synthetic photos, videos, and testimonials to “prove” program success.

These aren’t theoretical. The FBI has issued warnings about deepfake-driven financial crimes across multiple sectors — philanthropy included.

Building Cybersecurity Resilience: Defenses for the Philanthropic Sector

Nonprofits and foundations can fight back with a smart mix of technical controls, process safeguards, and staff awareness:

1. Verify Identity Beyond Email and Voice

• Use multi-factor authentication for approvals and payments
• Require call-back verification to a known number — never rely on caller ID; it can be spoofed!
• Adopt zero trust policies for leadership communications

If a request feels urgent, emotional, or secretive, pause and verify.

2. Strengthen Vendor and Grantee Due Diligence

Before funding:

• Check EIN validation and public IRS filings
• Confirm domain age and WHOIS registration
• Use OSINT tools (e.g., data leaks, breach checks)
• Verify real people through multiple channels (not just LinkedIn)

Maintain a trusted grantee database to reduce repeat vetting overhead.

3. Deploy AI-Powered Threat Detection

You can think of this as AI for Good vs. AI for Evil.

Solutions to consider:

• Email security platforms that detect malicious impersonation (INKY, Cofense, Proofpoint)
• Machine-learning fraud analytics for payment & grant disbursement systems (ActZero, Darktrace)
• Deepfake detection software for media submissions

Automation gives smaller teams enterprise-grade protection.

4. Secure the Grantmaking Lifecycle

Protect every stage where money can move:

5. Train Staff to Expect Fraud

Annual cybersecurity training isn’t enough anymore.

Focus training on:

• Deepfake recognition skills
• Social engineering red flags
• Secure data sharing practices
• Incident reporting — no shame, just speed

Philanthropy must treat cybersecurity as a programmatic investment, not overhead.

 The Future: Authentication by Design

As generative AI accelerates, philanthropy will need:

• Digital credentials embedded in photos, videos, and reports
• Blockchain-style audit trails for grant transactions
• Standards for AI transparency in funding processes

Funders can lead here — shaping what “trust” means in a world where seeing is no longer believing.

Final Thought

AI can unlock incredible potential for social impact — faster grant cycles, better fraud detection, and more insights for the communities being served.

But trust is philanthropy’s most precious currency.

To protect that trust, nonprofits must evolve their cybersecurity posture as quickly as AI evolves the threat landscape. The future of secure, ethical philanthropy depends on it.

For forty-two years, CGNET has provided state-of-the-art IT services to organizations of all sizes, across the globe. We’ve done it all, from IT and cybersecurity assessments to cloud services management to generative AI user training. Want to learn more about who we are and how we might be able to help you? If so, check out our website or send us a message!