# Charity fraud losses reported to Action Fraud reach almost £8 million a year

- Link: https://fundraising.co.uk/2019/07/30/charity-fraud-losses-reported-to-action-fraud-reach-almost-8m-a-year/
- Published: 2019-07-30T09:00:53+01:00
- Author: Melanie May

**Reported charity fraud losses reached almost £8m in 2018/19, according to figures
obtained by audit, tax and consulting firm RSM in a freedom of information request
to Action Fraud.**

[Action Fraud](https://www.actionfraud.police.uk/)‘s figures reveal that charities
submitted 1,057 reports about fraud in 2018-19, with average losses per case totalling
£7,428.

Employee fraud accounted for the highest level of fraud losses (£1.685m), followed
by abuse of a position of trust (£1.627m) and mandate fraud (£1.232m).

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The highest number of identified complaints were about mandate fraud (173), which
occurs when an employee is tricked into changing a regular payment mandate such 
as a direct debit, standing order or bank transfer and redirecting it into a fraudster’s
account, followed by employee fraud (95) and hacking (62).

Nick Sladden, [RSM](https://www.rsmuk.com/)‘s head of charities said:

> “While this data is unlikely to show the true level of fraud affecting charities,
> it is quite revealing about the types of fraud to which charities are most regularly
> falling victim.
> “Mandate fraud appears to be a particular problem with affected charities losing
> over £7,000 on average. Frankly, if staff receive the right training and if the
> correct controls are in place, there’s no reason why these types of fraud attempts
> should be successful.
> “It’s also clear that some charities need to keep a closer eye on their employees–
> and on those in positions of authority. While no one wants to work within a culture
> of distrust, charities still need to be alert to the threat of insider fraud and
> ensure that proper checks and balances are in place to minimise the risk.
> “While some larger charities may be able to absorb the losses from fraud, for 
> smaller charities already struggling with cashflow issues, a loss in the thousands
> can prove critical.”

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