Blog

Fraud

20 October 2017, 17:30

Reflections on how organisations can implement new ways of thinking to combat fraud

Post by CFG

Where next?

Events »

Thursday, 6 February 2020
Midlands Conference 2020 More »

News »

Thursday, 14 November 2019
A Charity Finance Manifesto To Enable Civil Society To Thrive More »

Following the development of new mitigation framework, Amnesty International’s Pascale Nicholls, reflects on how the organisation implemented new ways of thinking and working in relation to bribery, corruption and fraud. Throughout 2015 we were bombarded with messages in the media, at finance conferences and seminars and from our peers, that all organisations are losing millions of pounds annually to fraud. We were led to believe that an organisation of our size could be losing up to £3.4 million per annum. We did treat this statistic with some caution – our expenditure model is probably different to many other organisations in the sector. Nonetheless we needed to take this seriously: this is a potential loss of Amnesty International’s donor funds that should be being spent on delivery of core human rights work. This galvanised us to develop a new mitigation framework that covered bribery, corruption and fraud including the development of a communication strategy and education programme. The key elements of our combined fraud, bribery and corruption mitigation framework are:

Risk assessment and internal controls: As the foundation for our updated policy and training and communication programme, we started with an assessment of our key fraud risks - this would allow us to provide employees with practical, implementable knowledge using examples that would resonate. We did this by looking at all the ways that the International Secretariat receives or spends funds; this helped us focus on the risk areas and identify the weak links in our controls.
Policy: A combined anti-bribery, corruption and fraud policy was prepared and launched during our inaugural awareness week, timed to coincide with 2016’s International Fraud Awareness week.
Due diligence: We plan to review the effectiveness of our due diligence procedures relating to the ethical practices of current and prospective suppliers in late 2017. Earlier this year, our HR colleagues issued new guidance on pre-employment checks designed to mitigate against ‘insider threat’ (including fraud).
Compliance: We plan also to review the effectiveness of our current compliance model – staff, budget holders and the International Board all have a responsibility to ensure full compliance with anti-fraud policies and processes.
Reporting: Our reporting system for bribery, corruption and fraud has been articulated in the new policy document.
Training and communication: Staff training and communications were developed for the inaugural Amnesty International Fraud Awareness Week.

Our starting position was to raise awareness and change behaviours in relation to fraud as an additional element of our existing bribery and corruption mitigation strategy, as opposed to trying to tackle this as a distinct element. We commenced with a communication plan, the purpose of which was two-fold:

To raise awareness of the potential fraud, bribery and corruption risks faced by Amnesty International and how as an organisation we are working to mitigate against these risks
To ensure that the efforts of the full staff can be harnessed in anti-fraud, bribery and corruption activities and thus to reduce the cost of fraud to the organisation

We also reflected on our responsibilities, along with our peer organisations, as a founding member of the INGO accountability charter. The charter includes reporting requirements regarding staff training in this area and seeks to improve transparency around these issues in the public. We want to affect positive behaviour change, so needed the messages to resonate with our staff. Supported by our internal communications team, we developed five key messages:

Staff need to think of themselves as protectors/guardians of Amnesty’s assets
Whilst Amnesty has zero tolerance to fraud, bribery and corruption, where staff personal safety is compromised, this is of paramount importance
All staff must comply with policies and processes to ensure that anti-fraud controls operate effectively
Staff should be encouraged to ask questions and ask for support
All staff have a responsibility to fully participate in Amnesty’s formal anti-bribery, corruption and fraud training programme

To deliver these messages in an engaging way, we employed a variety of communication methods during our fraud awareness week including a poster campaign, a series of articles on our intranet, a pop up cake shop (fundraising to recoup our fraud losses!) and also ran a spot the fake fraudulent transaction competition (dummy requisitions were uploaded to our systems and staff were challenged to reject these). We are now busy working on the launch of the new fraud e-learning module, planning workshop based training sessions for staff and scoping activities for the second fraud awareness week in late 2017. We have also signed CFG’s Counter Fraud Pledge and will be ensuring that in all our efforts we adhere to the promises outlined, as the pledge provides a great standard to uphold all our work we are doing in this area. CFG is proud to support Charity Fraud Awareness Week 23-27 October. Sign up to the CFG Counter Fraud Pledge and we'll send you a toolkit to get you started on your journey to preventing fraud in all its forms: www.cfg.org.uk/fraudpledge « Back to all blog posts

Blog

Reflections on how organisations can implement new ways of thinking to combat fraud

Related Content

Regulation needed to protect customers

Charity Fraud Awareness Week 2019

Finance Focus Oct 2019

OSSIG roundup: The link between fraud, bullying, and safeguarding

Charity Fraud Awareness Week 2018 - Charity Fraud Out

Review: Wolves in Sheep’s Clothing Report - Extremism in Charities

Impact of money laundering and counter-terrorism regulations on charities

What makes your charity attractive to fraudsters?

'Collecting bucket' fraud becomes more sophisticated

Beware of snake oil pensions salesman

How safe is your charity from cybercrime?

6 simple steps your charity can take to help protect themselves from fundraising fraud

Do I need a fraud response plan?

Fraud and the 3 C's

What can charities learn from the recent fraud cases?

CFG launches Counter Fraud Campaign

Celebrating small charities

The Small Charities Guide to Preventing Fraud

What can charities learn from the international cyber attack?

The Charities Counter Fraud Checklist

The Small Charities Guide to Preventing Fraud

Responsible Record Keeping: what do voluntary organisations need to know?

Let's talk about the F-word

EU Referendum: What could this mean for charities?

Friday Afternoon Fraud

Countering Fraud: A guide for the UK charity sector

What did the Romans ever know about data protection?

Be prepared: preventing fraud in charities

Avoiding Cheque Fraud

Charity fraud - an ounce of prevention is worth a pound of cure

World Vision UK - Anti-Money Laundering Policy

World Vision UK - Policy Statement on Bribery

The Resilience to Fraud of the UK Charity Sector

World Vision UK - Anti-Fraud Policy

BRCS Anti-fraud and Corruption Policy

Fraud Response Plan

Authority Limits

Fraud - Prevention Better Than Cure