Since March charities have lost an estimated £3.6 million due to fraud and cybercrime. The Charity Commission has stated that the actual figure is likely to be far higher due to fraud and cybercrime being notoriously hard to detect and report by their very nature.
It is believed that unfortunately, the coronavirus pandemic has accelerated fraud and cybercrime because of the prevalence of remote working. Charities are often seen as somewhat soft and attractive targets by fraudsters due to the high volume of transactions and varied income streams. Staff have to be particularly vigilant to stop criminals getting into their systems.
The Charity Commission’s analysis of frauds reported an increase in not only external fraud but also insider fraud. The added economic strain caused by the pandemic has increased temptation for employees across all industries, not just charities.
Make sure your organisation has the best possible practices in place
It is always important to make sure your charity has the best practice in place to reduce the chances of a cyber-attack or data breach. Especially if there is a greater reliance on home working since the start of the pandemic, as fraudsters are looking to expose potential vulnerabilities within your system.
Further research has found that 73% of charities did make changes to their procedures and infrastructure once they had been the victim of fraud. But don’t wait until you are a victim before you review your current systems and processes!
For more information about how to maintain good cybersecurity please read our article here: https://www.hawsons.co.uk/cyber-security-home-working/
To find out more information about how to recognise bogus or phishing emails please read here: https://www.hawsons.co.uk/how-to-recognise-a-phishing-or-bogus-email/
How can we help
At Hawsons we have a dedicated team of charity and cybersecurity accountants at our offices in Sheffield, Doncaster, and Northampton. Our team fully understands the complex, ever-changing regulatory requirements of the charity and not-for-profit sector.
Our independent IT advice can provide you with cloud accounting and cybersecurity solutions.
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