Case Studies

Helpsheet for charities

by Mark Rowe

For charities large and small the unfamiliar operational and financial challenges of the covid-19 pandemic – fertile ground for criminals – the urgent shift to remote working, the roll-out of new communications technologies and the furloughing of staff have together created significant new fraud vulnerabilities which need to be tackled.

So says a two-page helpsheet on steps charities should take to protect themselves against fraud has been launched, by the Fraud Advisory Panel, itself a charity; Cancer Research UK, the sector regulator the Charity Commission for England and Wales, Charity Finance Group, the National Cyber Security Centre and Small Charities Coalition.

The document sets out the sorts of frauds around, and the ‘fraud triangle’ – how a fraudster has to have the motive (such as greed), rationalisation (to give the criminal the excuse to do the deed) and opportunity (such as less oversight and control of financial processes). The sheet lists some things a charity can do, to defend itself, always as working practices continue to change, regularly reviewing to ensure that policies and processes always remain appropriate to the moment and fit for purpose. This echoes the messages in October’s Charity Fraud Awareness Week.

Many traditional frauds (such as phishing emails, mandate, procurement, payment diversion and CEO fraud) continue, but with a Covid-19 twist, the authorities warn. A post-Covid economic downturn could bring 12 to 18 months of new challenges, fresh uncertainties and a heightened risk of fraud for charities, the group warns.

David Clarke, Chair of the Fraud Advisory Panel, said: “Changes to working practices because of the pandemic have created new opportunities for fraudsters and cybercriminals to exploit. Even as circumstances change, the main way for charities to stay safe is to get the basics right. This helpsheet provides vital information on what to look out for and how to protect your charity.”

Alan Bryce, Head of Counter Fraud and Cybercrime at the Charity Commission, said: “The problem of fraud against charities is not going away. If anything, the pandemic has made the threat even greater. This is why our helpsheet is a must read for anybody who wants to understand the fraud threats charities now face and more importantly, how to do something about them.”

You can read the helpsheet freely on the Panel’s website.

Meanwhile the Charity Commission and others are urging the public to beware of fake charities, even impersonations of well-known charitable bodies, that seek to deceive well-meaning victims. Helen Stephenson CBE, Chief Executive of the Charity Commission, said: “Christmas is always a time of generous charitable giving, and that’s to be celebrated. This year it comes as charities face immense financial strain after heroic efforts to support some of society’s most vulnerable people through the pandemic.

“This means it’s more important than ever to ensure that when we reach into our pockets, our festive contributions don’t go astray. That’s why we’re urging everyone to give with their head as well as their heart and check before they give.”

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