Just like all organisations, charities are highly susceptible to fraudulent activity. In fact, the Office for National Statistics announced that fraud is the most reported crime in the UK and that the charity sector loses at least £150 million per year to it.
From false representation to failing to disclose information and even abusing position to make a gain, fraudsters are always trying new methods to beat vulnerable individuals.
Nevertheless, The Charity Commission recommends following these simple steps to reduce the risk of fraudulent activity:
- Establish strong financial management – while charities are often reliant on part time volunteers, it is important that there is a clear financial management strategy with one person, or team, strictly in charge of the overall finances, therefore minimising the number of people with access to confidential data.
- Enforce financial records – up to date records should be kept on all incoming and outgoing expenses so that the charity knows exactly where they stand, making fraudulent activity easier to identify.
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If you would like more information on protecting your charity from fraudulent activity, contact Insync Insurance. We can also assist with cyber insurance, legal liabilities and contents and equipment insurance, all tailored to meet your charity’s needs.