ESFA warns of increased fraud risk during pandemic

Schools could be at increased risk of fraud during the coronavirus pandemic, the ESFA says in its new guidance. Fraudsters will actively exploit these difficult times and will target vulnerable areas for financial gain.

ActionFraud reported a 400 per cent increase in reports of coronavirus related fraud in March 2020.

The ESFA says that during these periods staff wanting to be helpful and flexible when dealing with suppliers can be more susceptible to targeted attacks from fraudsters, particularly around changes to payment details.

Organisations should continue to follow all business processes and procedures designed to protect them from fraud, the ESFA advises.

The ESFA says that schools should maintain effective governance and financial management and oversight. Staff should be periodically reminded that, despite the instability, the organisation continues to implement and require compliance with internal controls.

The ESFA says schools should maintain strong internal controls and retain and implement clear policies and procedures. Provide further training on these policies and procedures where required.

It also advises to maintain and promote strong anti-fraud controls. Review internal control risk assessments and fraud risk assessments. Ensure that staff know how to report suspected fraud.

Internal audits to monitor internal controls and segregation of duties to ensure they are operating effectively is also advised.

The ESFA also warns that cybercrime is an increasing risk to all business, including the education sector, and is a particularly vulnerable area in the current situation.