Great video on Insider Fraud from Fraud Awareness week. Some interesting stats I heard at a meeting last week: Insider Fraud committed by 27% Trustees, 8% Volunteers and 35% Employees. Video definitely worth watching
Here are three useful visual tools that will help you make your team aware of the potential risk of fraud within your charity. (1) Infographic highlighting the most common charity fraud risks. (2) Infographic on how to respond to fraud. (3) Also a Be Fraud Aware poster that you can display in your office.
Pre-existing awareness and knowledge around cyber security varies considerably across the charities. Those in responsible for cyber security, especially in smaller organisations, did not feel well informed about the topic, and several noted that they had not seriously considered it before or proactively sought out any information, often leaving it to an outsourced IT provider to deal with. Cyber Security Among Charities report makes interesting reading
Across the sector, charities are embracing different technologies to increase their fundraising efforts, but still use paper-based processes in the back end. David Hawes from Devon Air Ambulance Trust discusses how his organisation modernised their financial processes to improve efficiency and decrease vulnerability to fraudsters.
Charity Finance Group (CFG) has launched a guide to help small charities counter fraud. The guide, The Small Charities Guide to Preventing Fraud looks at measures that charities can put into place to help them stop fraud. This guide will help small charities to understand what fraud is, outline the steps they need to protect themselves against fraud, highlight what tell-tale signs to look out for to detect fraud, know what to do once they have detected fraud and where to report fraud when it has occurred.
Charity Finance Group has produced a The Charities Counter Fraud Checklist. This checklist is designed to help charities to establish (or strengthen) their counter-fraud policy. The checklist asks ten essential questions that all charities should be thinking about when working to tackle fraud.
Charities Against Fraud: Charity trustees have a duty to manage their charity’s resources responsibly and ensure that funds are properly protected, applied and accounted for. With a total annual income of over £69 billion, the charity sector is vulnerable to fraud and financial crime. It’s essential that trustees put in place suitable counter-fraud measures – even small changes can help protect charities from harm. The Charity Commission and others have established the Charity Sector Counter Fraud Group (CSCFG) to help improve the charity sector’s resilience to fraud.
Here are some useful templates from the Charities Against Fraud Group: Anti Fraud and Corruption Policy Anti Fraud Policy 1 Anti Fraud Policy 2 Fraud Investigation Plan Quick Guide to Investigative Interviews Terms of Reference Whistleblowing Policy
Tackling Fraud in the Charity Sector: This guide is for trustees and senior managers of charities in England and Wales. It highlights the main learning points from the first national conference on charity fraud held in late 2015, and provides signposts to extra sources of information, support and best practice. It concludes with a summary of top tips for preventing, detecting and responding to fraud. Link to Fraud Advisory Panel
Charity Commission: strategy for dealing with fraud: This strategy document describes the Charity Commission’s role and approach in dealing with fraud. It explains how the commission deals with concerns of financial crime and financial mismanagement, when it might intervene, why and how and how it works with the sector and other agencies aiming to prevent problems arising in the first place. Top tips for responding to fraud – Infographic
Countering Fraud in the Charity Sector: Charities need to move beyond merely identifying that a fraud or attempted fraud has occurred, and then reacting as best they can. Such an approach fails to be proactive or preventative. Fraud ranges from very general attacks that could affect any business in any sector, to types of fraud that are specific to charitable organisations.
Annual Fraud Indicator 2016: (Page 25) Charity sector fraud is estimated to cost around £1.9 billion, representing 2.5% of the sector’s annual £74 billion income and expenditure (BIS, 2014). It is also worth noting that the sector does not just include voluntary and aid organisations.
Action Fraud is the UK’s national reporting centre for fraud and cyber crime where you should report fraud if you have been scammed, defrauded or experienced cyber crime. They provide a central point of contact for information about fraud and financially motivated internet crime. People are scammed, ripped off or conned everyday and we want this to stop.