Scams the secret crime Alan Bryce Senior Manager Development & - - PowerPoint PPT Presentation

Charity Commission & Sussex police – Scams the secret crime

Alan Bryce Senior Manager Development & Intelligence, Charity Commission for England and Wales Richard Corden Director Southampton Hospital Charity

Address to Association of NHS Charities 9th November 2016

1

AGENDA :

• An overview of charity fraud
• Learning the lessons and improving

defences

• Recent fraud case
• Questions

What do the following have in common:

• £1.3 billion (2011)
• £1.1 billion (2012)
• £147 million (2013)
• £1.9 billion (2016)

National Crime Agency (2015) stated: …..individuals, the private sector and the charity sector lose billions of pounds each year to fraud.

Significant under reporting of frauds - WHY

• Typically about 200 cases per year of

fraud reported to Charity Commission (Reporting Serious Incidents)

• Typically about 250 cases of theft

reported to Charity commission BUT

• ONS states nationally 10 times as many

cases of fraud as theft.

• First ever high level analysis of a

sample of RSI fraud reports

• Not representative, but valuable

learning points

• Massive under reporting

Reporting Serious Incidents

• Internal frauds are at least one third of

all frauds reported to us

• Excessive trust and failure to apply

existing controls a common theme

• Mandate fraud/Chief Executive fraud
• Cyber enabled/ social engineering

What we found

CHARITY FRAUDS

Good practice – what should be done

• Raise staff awareness, develop a counter

fraud culture

• Would staff recognise a fraud?
• Annual risk assessment
• Encourage raising of concerns
• Apply controls consistently, challenge,

professional scepticism

• Cyber essentials and cyber defences?
• Social engineering – make staff aware
• TRUST is not a CONTROL

Cybercrimes

• WE NEVER RE-USE A PASSWORD
• CORRECT?

And we never reuse a password, right?

The average consumer has 26

• nline

accounts

And an average

• f

5 passwords

to protect them

Data targeted in 2012 breaches:

Credit Card 6.4% Account Info 7.4% Medical Data 9.4% Date of Birth 11.2% Social Security Number 14.4% Address 23.9% Name 44.4% Password 50.2% Email 52.3% Username / Login Information 55.2%

1

CHARITY FRAUD

Social engineering.

• A bat and a ball are worth £1.10
• The bat is worth one pound more than

the ball

• What is the ball worth?

Charity Sector Counter Fraud Group Enhanced joint working with key partners New website (Charities Against Fraud) – launched 24th October 2016 Charity fraud awareness week (24th-28th October 2016) Regional fraud seminars – December 2016, January 2017 Second national charity sector fraud conference jointly with Fraud Advisory Panel – 28th October 2016

THE COMMISSION’S WORK ON FRAUD RISKS

If you want to know more

• alan.bryce@charitycommission.gsi.gov.uk
• intelligence@charitycommission.gsi.gov.uk
• www.charitiesagainstfraud.org.uk

1

CHARITY FRAUD

A recent fraud case - fundraising

• Richard Corden
• Director, Southampton Hospital

Charity

Any questions?