How to Spot Fake Crowdfunding Campaigns in India
Crowdfunding can do a world of good – paying for a sudden medical bill, helping a family rebuild after a fire, or funding relief after a disaster. But not every appeal on social media is what it seems. Increasingly, emotional posts, videos and screenshots are being used to pull at heartstrings and collect money that never reaches the people who actually need it. Sometimes the funds are spent selfishly; other times they may even be diverted into dangerous or anti-national activities. That’s why every donor needs to pause and verify before contributing.
A recent case makes the risk painfully real. Authorities in Uttar Pradesh arrested three young men from Bhiwandi accused of raising roughly ₹5 crore through social-media appeals claiming to help Gaza victims. Investigators say the funds were routed into personal accounts and used in ways that didn’t match the campaign claims. Whether you sympathize with the cause or not, this is a reminder: emotional content can hide fraud.
Why Many Crowdfunding Campaigns Go Wrong / Are Illegal
Lack of oversight and regulation
- India allows reward-based, donation-based crowdfunding, but equity-based crowdfunding (raising funds by offering shares) is illegal under SEBI rules.
- Platforms sometimes don’t do deep verification; fake medical documents or forged receipts are used without proper checks.
Misuse of funds
- Money often ends up in private bank/UPI accounts instead of the indicated beneficiary or organization.
- Some campaigns exaggerate, fabricate, or use stories/photos/videos misleadingly.
Propaganda & anti-national misuse
- Emotional content is used (videos of suffering, children, etc.) to gain sympathy and donations.
- In some cases, funds may be used for propaganda against India, radicalization, or linked with extremist groups. The recent UP ATS case suggests such risks.
Fake or inadequate documentation
- Medical bills, hospital certificates, identity proofs are faked or unverifiable.
- Little or no transparency: no updates, no proof of fund usage.
Simple Checks To Do Before You Donate
- Check the platform and the organizer. Prefer established fundraising platforms or registered NGOs. If the campaign asks you to send money to a personal bank account, treat it with caution.
- Look for verifiable documents. Genuine campaigns usually link to hospital bills, official receipts, or NGO registrations that you can verify. Screenshots alone are not enough.
- Follow the money trail. Reputable campaigns post updates and transparent expense breakdowns. If there’s no follow-up after funds are collected, that’s a red flag.
- Search for independent mentions. Look for news coverage, social-media posts from other donors, or third-party endorsements. A quick search of the campaign name + “scam” or “review” can reveal problems.
- Ask direct questions. Message the organizer: who will receive funds, how will they be transferred, and can they provide contact details for the beneficiary organization or hospital? Legitimate organizers will respond clearly.
Wrap up
Giving is a powerful act of kindness, but in the age of viral content, generosity must be paired with caution. Take a few minutes to verify – your small diligence can protect your money and prevent it from being misused. The recent arrests connected to a large “Gaza relief” fundraiser should remind us: not every urgent plea online is genuine. Donate with your heart, but verify with your head.
