Insider fraud, fraud committed by a trustee, staff member or volunteer at a charity, is among the most damaging types of financial abuse a charity can suffer.
This is because it affects more than a charity’s finances – it can have a deeply corrosive impact on staff and volunteer morale, and on a charity’s reputation.
In theory, insider fraud should be relatively straight-forward to prevent. All you need is some basic financial controls and checks that are properly enforced, right?
Well, yes, but our case work shows that too many charities are not getting this right. Our data suggests around a third of fraud in charities are committed by an insider.
We want to better understand why that is. What goes wrong in charities before and when an insider fraud happens? What are the relationships, the group dynamics? And how can trustees help ensure their charity doesn’t fall victim?
Our call for information on insider fraud asks charities, professional advisers, umbrella bodies or charity insurers to share their experiences of not only bad practice and internal fraud but also examples of good practice which lead to fraud being discovered or prevented.
My team will use this information, as well as intelligence from our case work, to compile a lessons report on insider fraud which in turn will inform the development of our guidance and case-working, and ultimately help charities prevent, identify and tackle this type of abuse.
We’ve already had lots of useful submissions, and with a week or so to go, we want to encourage anyone who hasn’t taken part, but has something they want to share, to complete our simple survey.
You’ve got until 8 December 2017 to help us help charities tackle insider fraud – we’re grateful to everyone who takes the time to respond.