Media Centre
Fraud Updates
PCB News
Fraud Updates 2004
14 December
It has recently been reported that the bank accounts of over 30 charities have been frozen following the discovery of a scheme to defraud large charities. Nine men were arrested and accused of making hundreds of fraudulent applications to the Big Lottery Fund and other grant-distributing organisations including Barnardos and Comic Relief.
It is believed that the fraudsters used community groups claiming to help African refugees and even rented premises for their bogus charities. In addition, hundreds of connected names and addresses were used to make the grant applications. The fraudsters only applied for small sums of between £500 and £5000 in order to reduce the chances of being caught.
The scam demonstrates that all organisations should have detailed internal audit procedures in order to protect themselves from fraud. If fraud is discovered, victims should always consider using civil proceedings as a speedy method of freezing stolen assets.
| March 2005 | November 2004 |