Creating Value In Schools
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Changes in the academy trust handbook and guidance around reducing fraud indicate an awareness from the DfE that fraud is a very real risk. Schools and trusts need to have robust fraud prevention measures in place. Risks can be mitigated through:
The DfE guidance Reducing fraud in the education sector flags up different types of fraud and the need to be vigilant around cyber security and cybercrime.
It suggests that every school should have:
Prevention is the most effective way to reduce fraud risk, and creating an anti-fraud culture is a vital part of that.
An anti-fraud culture
An anti-fraud culture is one where there is:
The DfE’s Indicators of potential fraud in educational organisations is a useful tool for raising awareness of behaviours or attitudes which could indicate fraudulent activity.
The red flags are categorised as:
In an anti-fraud culture, questions can be asked, and procedures and processes queried.
Staff also need to understand different types of fraud and how fraud can take place.
Social engineering
Social engineering is a key concept for all staff to understand. It refers to the use of psychological tactics to influence people into performing an action or divulging confidential information.
It might be the sense of urgency created by a text message saying there’s an issue with your tax, or your bank account has been compromised. Or there’s an email with the promise of a competition win, or a parcel waiting to be claimed.
Social engineering is particularly associated with internet scams – i.e. cybercrime.
For some useful definitions and descriptions of different kinds of frauds, see social engineering.
This video also gets the point across clearly:
Staff need to be encouraged to stop and think, especially in situations where they feel they are being put under pressure.
Robust processes are vital in reducing the risk of fraud.
This is highlighted in the case of the academy trust that fell victim to a cyber scam, leading to the loss of £385,000. Funds to pay for building work were channelled into the criminal’s bank account, after the supplier’s email was intercepted and bank details changed.
Having just one person involved in most finance processes is also a major risk. Note the case of a school business manager who financed holidays and a lavish lifestyle with school funds. She was able to write herself cheques and even put in her own variation form for a salary increase.
As well as the need for internal controls, this again highlights the importance of those red flag questions and a culture of questioning.
Drip feed messages through regular inputs, relevant to different staff roles and responsibilities. Reminders at staff briefings, informative videos shared, scenario-based questions and real-life case studies can all be part of that awareness raising.
Here’s an example of the kind of video which could be used to prompt discussion: Social Engineering: Derec’s experience.
