Third-sector at increased risk of cyber fraud due to lack of cybersecurity software

The Rewarding Industries 2023 report, conducted by Endsleigh Insurance, surveyed financial decision-makers across the third sector to analyse how organisations respond to the challenges faced in today’s climate. It found that 57% of respondents are concerned about the rising threat of cybercrime to their organisation, but only 24% have introduced dedicated cyber security risk management software.

The report also found that the third sector is increasingly adopting technology, with 40% of respondents using technology to support new fundraising efforts and 33% increasing the amount of online fundraising. However, this increased use of technology is exposing many charities to cyber-attack threats. In the last 12 months alone, 27% of respondents said they had been a target of cyber fraud, and 20% had experienced a health and safety breach.

Alison Meckiffe, CEO of Endsleigh Insurance, said: “Third-sector organisations hold extremely sensitive data, which can be devastating if they fall victim to data breaches, potentially putting vulnerable people at risk. Cyber fraud is also a huge cause for concern for the sector as many move towards digital fundraising models.”

The report’s findings highlight the importance of cyber security for third-sector organisations. With more and more charities using technology to deliver their services and raise funds, they must have the necessary safeguards to protect themselves from cyber-attacks.