With last week being Charity Fraud Awareness Week, the Charity Commission has unveiled updated guidance to help trustees protect their charities from fraud and cyber crime. This follows the regulator revealing that it opened 603 cases related to fraud and 99 cases involving cyber crime in the past year.
Simplified and focused guidance
The newly launched resources include:
- Fraud guidance:
- Explains what trustees should do if fraud or attempted fraud occurs.
- Provides practical tips to mitigate fraud risks, such as implementing robust internal financial controls.
- Cyber crime guidance:
- Focuses on common threats, such as phishing, which the Commission has identified as the most frequent cyber-enabled fraud targeting charities.
- Emphasises creating an internal culture of fraud and cyber crime awareness.
Both guides replace older, more complex versions and were developed in collaboration with the National Cyber Security Centre (NCSC).
Mazeda Alam, Head of Guidance & Practice at the Charity Commission, encouraged trustees to take proactive measures: “Protecting your charity from fraud and cyber crime can understandably seem daunting, but there are many small, inexpensive steps charities can take to reduce the risk of any potential internal or external fraudster being successful.”
He continued by saying that introducing even simple measures, such as requiring dual authorisation for financial transactions, can significantly reduce risks.
Importance of reporting
The guidance also highlights the need to report all fraud attempts—successful or not—to Action Fraud. This ensures accurate data on how fraud affects the charity sector and provides trustees with necessary support.
The updated resources aim to equip charities of all sizes with the tools to enhance their security. If you are a trustee, you will likely find it helpful to review the guidance and adopt preventative measures to safeguard your charity’s assets and reputation.
If you would like any help with charity financial matters, please contact us and we would be happy to help you.
See: www.gov.uk