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Nearly half of charities fell victim to fraud over past year, research indicates
Created: 26/11/2024
News/Events Category: General News
Almost half of charities were victims of fraud over the past year despite improvements in fraud awareness, according to new research.
A survey of 139 UK charity leaders, carried out by the business advisory firm BDO and the Fraud Advisory Panel, found that 42% of charities have been victims of fraud over the last 12 months.
This was despite improvements in fraud awareness amongst charities, BDO said, with 80% of charities having one or all of the following policies: conflict of interest, whistleblowing, risk-register including fraud and anti-fraud.
Highlights from the 2024 Charity Fraud Survey, show that just over half of respondents believed their financial investment in fraud prevention was enough to address fraud risks.
This year internal fraud was still prevalent, the survey found, with half of the charities that had experienced fraud over the past year saying that it was committed by staff, volunteers or trustees within the organisation.
More than 2/3 of the charities that had been victims of fraud over the past 12 months experienced losses under £100,000. However, 10% of charities suffered a financial loss of up to £1m, with 5% reporting total losses exceeding £1m.
The survey found that the most common type of charity fraud was the misappropriation of cash or assets by staff and volunteers, experienced by 40% of the charities that had experienced fraud in the past year.
Payment diversion fraud, also known as authorised push payment fraud, was the second most common type, accounting for 33%.
The research also found that staff expenses fraud remains high, with 29% of charities experiencing this over the past 12 months.
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