Insider fraud – an alert for charities

22nd August 2018

The Charity Commission has again called for charities to be alert to the threat posed by insider fraudsters and cyber criminals after concerns were raised by the National Fraud Intelligence Bureau (NFIB).

The NFIB identified that over 50% of organisations have suffered an insider fraud and that 90% of businesses feel vulnerable to cyber attacks from within their own organisation. Charities are as vulnerable as any other organisation.

The threat posed by insiders is often greater than an external threat, due to their knowledge of the business, key controls and procedures and their access to data.

Charity Commission research found that insider fraud was enabled due to:

  • Poor challenge and oversight
  • Poor or no internal controls, and their inconsistent application
  • Too much reliance and trust placed on one individual

Top tips for fraud prevention

The Charity Commission lists 10 top tips for prevention of fraud:

Charity commission's top tips for fraud prevention.


Media source: Fraud Advisory Panel & Charity Commission for England and Wales, you can access the full Charity Commission guidance here.

Action Fraud

If your charity has been affected by fraud you should report it to Action Fraud by calling 0300 123 2040 or visiting the Action Fraud Website. The Charity Commission also have a dedicated serious incident contact email address; rsi@charitycommission.gsi.gov.uk where it logs frauds and can therefore provide timely guidance and advice to your charity.

Robust systems and controls

The risk of fraud can be considerably lowered by having in place a strong control environment and robust systems which are implemented consistently. At Bishop Fleming, our team have significant experience in assisting clients to review and improve upon their internal controls and systems. If you would like us to assist with your charity please contact your local Bishop Fleming charity expert.

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