Damages from fraud in the charity sector have increased by 135%
The BDO Global Consulting Group has published the latest edition of its annual FraudTrack research. The results are very interesting.
In 2017, the UK suffered from scams in an amount of 2.1 billion pounds. In 2018, the amount was only 746 million. Several sectors did not support the general positive trend. Alas, charity stands out among them! Fraud within it increased by 135% from 8.5 to 20 million pounds. Construction also stood out with an increase of 223% from 2.6 to 8.3 million pounds. And here are some interesting facts. The motive for fraud in 76.6% of cases was greed. Every fifth crime was committed by an official in a large company. The number of cases of unauthorized use of other people’s assets has increased astronomically by 57,185% to 115.1 million pounds.
“Alas, most companies are fighting against fraud only from within using their own staff. It is necessary to strengthen the control and monitoring of those who have access to important information within the business,” complains Kaley Crossthwaite, co-author of the report and head of fraud at BDO.
Dear Kaley, we have a solution! The W12 team has created a blockchain platform, where the collection/expenditure of funds in the construction, crowdfunding, and charity sectors is controlled not by people, but by a decentralized autonomous organization (DAO). It consists of an impartial smart contract, a public distributed ledger and decision-making mechanisms.
