Closing out Charity Fraud Awareness Week, the Charity Commission had called on not-for-profit organisations to be vigilant of “insider fraud” – amid news that one-third of fraud cases at charities are carried out by volunteers, staff, or trustees.
Michelle Russell, director of investigations, monitoring and enforcement at the Commission, said it is crucial that people working in the sector are “fraud alert”.
It comes after a high profile case involved the former head of Cyrenians Cymru – the Welsh homelessness charity, who pleaded guilty to defrauding the charity of over £1.3 million over six years.
“Insider fraud can have a damaging impact on a charity’s reputation and the morale of other staff and volunteers. It can also dent donors’ and beneficiaries’ confidence in the charity and its work,” the Commission said.
It is calling on charities to share their experiences of dealing with insider fraud to help identify common themes, highlight good practice in charities, help other charities learn lessons from the past, and improve the regulator’s guidance to help charities in the future.
Speaking at Charity Fraud Awareness Week, which ran 23 to 27 October, Ms Russell said charities can act now by keeping an eye out for any suspicious behaviour or irregular activity, and reporting it when they do have concerns.
To share your experiences, the insider fraud survey for charities can be found here.
