Charity Fraud Awareness Week 18-22 October 2021 – Insider Fraud

Charity Fraud Awareness Week brings together the charity and not-for-profit sectors from around the world to raise awareness and share good practice in tackling fraud and cybercrime.

Fraud HelpsheetGetting to know your staff

Performing proper due diligence in all staff and recruitment matters is an essential part of getting to know the people who work for you. It can greatly reduce the risk of insider fraud.
 

What is Insider Fraud?

This is when someone exploits their role or occupation for personal gain by deliberately misusing the organisation’s assets and resources. It often includes the abuse of trust.

Fraud can be committed by anyone, whether:

  • a trustee;
  • an employee (temporary or permanent); or
  • a volunteer.

This person may act alone or in collusion with someone else. Sometimes criminal gangs will deliberately seek out people ‘on the inside’ to help them commit fraud, for example by asking for information on how to bypass controls.

Warning Signs

Certain kinds of individual behaviour can be red flags for insider fraud. For example:

  • an aggressive or bullying manner that makes colleagues unwilling to challenge their behaviour;
  • a tendency to be over-protective of their work or to take on additional tasks beyond their job description;
  • asking to use someone else’s log-in details because they have forgotten their password;
  • an unwillingness to take holidays or be away from the office for more than a day or two at a time;

A very useful helpsheet, kindly prepared by Cifas and the Fraud Advisory Panel, can be downloaded here

Case studies of inside fraud in charities can be found here