In the 2025 survey produced by the Fraud Advisory Panel and BDO the results continued to be upsetting.

Of 164 respondents, 34% confirmed they had been a victim of fraud. This is 8% lower than in 2024 but the expectation for 2026 shows 52% of charities expecting fraud risk to increase.

Why might this be? Well, in addition to the widely discussed cyber, investment and employee fraud we now have AI to add into the mix.

AI is everywhere, everyone is using it and if you’re not there is a real fear of being left behind.

Whilst AI is certainly something we need to get on board with as it isn’t going anywhere, we do need to consider the risk and potential impact.

The Fraud Advisory Panel has assisted in the production of a helpsheet which may provide some more detailed insight for a Trustee meeting discussion: AI AND YOUR CHARITY: A FRIENDLY STARTER GUIDE - Prevent Charity Fraud

During 2025 a staggering 38% of frauds were committed by individuals within the organisation and 23% by people with no connection to the charity.

More than 50% of these frauds were identified by internal controls with 18% by internal or external whistleblowers.

Only 45% of frauds were reported to the police despite the total financial implications sitting between £614k and £6.2m.

No charity is risk free when it comes to fraud. The Charity Commission provides a list of recommended actions for all trustees:

• Adopt an anti-fraud policy and promote it, so that everyone at the charity knows the policy
• Review your charity’s fraud risks once a year, or after a fraud or attempted fraud
• Run checks to satisfy yourselves that your financial controls are being followed
• Know if your volunteers, employees or trustees do not understand your fraud prevention measures and act on this. For example, do they need training?
• Understand the risks of cyber fraud and cyber crime
• Complete pre-employment checks on staff
• Have a fraud response plan so that everyone knows what to do if they discover fraud
• Discuss risks of fraud with organisations that your charity works with or funds
• Report risks and how they are managed in your trustees’ Annual Report. Some charities must do this

If you aren’t quite sure where to start, here at Rickard Luckin we have an experienced team who can help review the procedures you have in place, identify weaknesses and make recommendations for improvements. The reviews can be tailored to your specific needs and the findings presented in an easy to read document for management and trustees alike. So, while the Charity Commission acknowledges that fraud will always happen, why not ask us to help you to mitigate that risk.