The Charity Commission has issued a report on fraud against UK charities which helps highlight some very real potential problems for charities.
The report is a follow-up to an original report published in 2009 by the Fraud Advisory Panel into fraud and the charitable sector. This latest report, which has been extended in scope, is the largest ever analysis of fraud committed against UK charities.
A link to the report is set out below and we would advise that this is something that every trustee of a charity, as well as anyone involved in the day-to-day running of a charity, should read.
For example, the report highlights the risks of impersonation fraud, often referred to as “CEO” fraud, where the fraudster impersonates a senior member of the charity’s staff or a trusted third party and uses hoax emails to arrange a transfer of funds to their own account. The report gives other examples but also sets out some steps that charities of all sizes can take to protect themselves from fraud and financial abuse.