Charity Fraud Report 2024:

2024 is the fourth year of BDO’s Charity Fraud Survey, in partnership with Fraud Advisory Panel.

This year we had the highest response rate for the survey, with 139 respondents, a 15% increase from last year. This demonstrates an ongoing commitment from charities to share their fraud-related experience so that we can get a clearer view of the charity fraud landscape.

Despite operating in a continually challenging fraud environment, our 2024 survey reveals a real sense of development and growth in how charities manage fraud risk, from a positive stance when dealing with instances of fraud to an optimistic outlook when developing prevention strategies.

How the charity fraud landscape is evolving

Our 2024 survey highlights a number of trends that must be addressed by charities, in particular a sustained risk of fraud from those within charities, the ever-evolving threat of cybercrime and the ongoing cost-of-living crisis which has placed a great strain on both households and organisations, including charities.

The three most common types of fraud overall are:

• Misappropriation of cash or assets (40%).
• Authorised push payment (APP)/payment diversion fraud (33%).
• Expenses and subsistence fraud (29%).

 

In addition:

• Although the level of fraud experienced by our respondents has remained broadly the same as last year (42% compared to 43%), only 84% suffered financial loss compared to 92% in 2023. 
• 78% of charities experienced some non-financial impact after a fraud compared to 56% in 2023.
• 50% of fraud was committed by people within the charity (equal to 2023).
• 29% of fraud was committed by external fraudsters (up from 23% in 2023).

 

Looking ahead

• 50% of charities expect fraud risk to increase in 2025.
• 60% of respondents agree that the ongoing cost-of-living crisis has heightened fraud risk.
• 45% of respondents believe the Economic Crime and Corporate Transparency Act will apply to them, of which, 88% have already taken or are committed to taking action in response.

 

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For more information on fraud, the following articles will provide additional insights: