The majority of UK charities admit that fraud is a major risk, yet they still fail to carry out basic tasks to protect themselves, according to a report published by the Charity Commission.
Over 3,300 charities took part in the Charity Commissions’s survey into fraud awareness, resilience and cyber security in the sector. Over two thirds of charities agree that fraud is a significant risk. So-called ‘insider-fraud’ is recognised as one of the biggest threats.
The survey found that 85% of charities think they are doing everything they can to prevent fraud, but almost half do not have robust protections in place. Just 30% of charities have a whistleblowing policy, and only 9% have a fraud awareness training program.
In its report, the Charity Commission said: ‘The findings show charities are not always recognising how vulnerable they are, and are not consistently putting basic checks and balances in place. The gap between awareness and practical action poses a threat to charities’ valuable funds, and to public trust and confidence in the sector.’
Quote from Nigel Holland:
“UK charity owners need to make sure they are doing everything they can to prevent fraud. A deeper analysis into their preventative measures is required to make sure that there is nothing they are missing.”