Direct debit fraud

The Charity Commission has issued a warning about instances where fraudulent direct debits have been set up from charity bank accounts, resulting in the abuse of charity funds.

It suggests that charities:
  • write to their banks and inform them that no further direct debits should be set up without the specific approval of certain named authorised personnel; and
  • check bank statements regularly, make sure that they reconcile with the charity records and investigate any unexplained or unusual direct debits.
Under the direct debit guarantee scheme, if the charity has been wrongly paying a direct debit it can reclaim this money from the bank. It is then up to the bank to reclaim this money from the supplier.

[Source: Charity Commission News – 21 January 2010]

Read the full advice here

For more information contact:
Cath Gaskell
Finance Resources Officer
0151 705 2180