Charities – Insider Fraud Threats

Across our private company client base we are increasingly hearing about cyber frauds and attacks and this has been very much in the news. However, charities and other ‘not for profit’ organisations also need to be continually aware of insider fraud threats.

The Charity Commission has just published an article regarding this and The National Fraud Intelligence Bureau (NFIB) has released a National Alert highlighting the insider threat from fraudsters and cyber criminals.

Their alert identifies that over 50% of organisations have suffered an insider threat attack in the previous year, and that 90% of businesses ‘feel vulnerable to a cyber-attack from within their own organisation’. Charities are just as vulnerable to insider threats as the private or public sector.

We would therefore urge all organisations to continually review their systems and procedures to consider the risk of fraud both from external and internal sources.

Charity Commission research about insider fraud found that these crimes were made easier because of:

  • Poor challenge and oversight.
  • No internal controls or, where controls did exist, not applying them consistently.
  • Too much trust and responsibility placed in one person.

As such these are some key areas for all directors and management to consider, and if necessary to take steps to overcome any issues identified.


Blog written by Ben Bradley


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