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 9 th 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.

CHARITY FRAUDS Reporting • First ever high level analysis of a sample of RSI fraud reports Serious • Not representative, but valuable Incidents learning points • Massive under reporting • Internal frauds are at least one third of all frauds reported to us What we • Excessive trust and failure to apply existing controls a common theme found • Mandate fraud/Chief Executive fraud • Cyber enabled/ social engineering

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 And an average has 26 Credit Card of 6.4% Account Info online 7.4% 5 passwords Medical Data 9.4% Date of Birth 11.2% accounts Social Security Number to protect them 14.4% Address 23.9% Name 44.4% Password 50.2% Email 52.3% Username / Login Information 55.2% Data targeted in 2012 breaches:

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? 1

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

If you want to know more • alan.bryce@charitycommission.gsi.gov.uk • intelligence@charitycommission.gsi.gov.uk • www.charitiesagainstfraud.org.uk

CHARITY FRAUD A recent fraud case - fundraising • Richard Corden • Director, Southampton Hospital Charity 1

Any questions?