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With cyber attacks and breaches on the rise, here’s how to get trustee buy-in to invest in stronger cyber security
Charities play a crucial role in supporting people and communities, which is why trustees must ensure they safeguard their funds, services, and donor and beneficiary information. Every donation should be used for its intended purpose — to help further a charity’s mission — and not fall into the hands of fraudsters.
Every day, hackers launch targeted attacks on organisations around the world for nefarious purposes. Charities are specifically targeted because hackers believe that their security systems are likely to be less robust and sophisticated than those of corporate organisations.
According to the Cyber Security Breaches Survey 2024, 32% of charities had experienced some sort of cyber security breach or cyber attack. And for charities with an annual income of more than £500,000, the figure was 66%.
The most common type of cyber breach or attack was phishing, which impacted 83% of charities. Phishing is when fraudulent emails or messages look like they come from reputable companies with the purpose of trying to get personal information, such as passwords or bank account details.
Cyber security refers to measures that are designed to protect computer systems and networks from the theft of or damage to their hardware, software, or electronic data. While there is an impression that investing in cyber security is expensive and directs funds away from delivering impact, this could not be further from the truth. In fact, robust cyber security helps to eliminate any disruption or misdirection of services, ensuring they are able to continue delivering impact for their communities, as well as protecting their data.
Trustees have ultimate legal responsibility for a charity, and that includes ensuring the organisation is protected against cyber breaches and attacks. In this article, we explore how charities can secure trustee buy-in and ensure their organisation is better protected should cyber breaches occur.
Trustees may be completely unaware of just how common, and therefore likely, cyber breaches and attacks are — particularly in the charity sector. So, collate the latest statistics to show them that it’s more common than they think. You can find the latest statistics on GOV.UK, specifically in the Cyber Security Breaches Survey 2024.
There are, sadly, a wealth of real-life stories and case studies from charities of all sizes who have experienced cyber attacks or breaches. Trustees of a small charity may feel that hackers would only target bigger charities, but no charity is safe from these malicious practices.
One example, cited in the Cyber threat report: UK charity sector (2023), shows how easy it is for criminals to gain access to your systems.
A staff member at a small hospice charity in the West Midlands received an email that they thought was from Microsoft, asking them to change their email password. They changed it and then received a confirmation email that their password had been changed but that they needed to re-enter their old password, which they did. The next day, the charity received calls from donors who were concerned about an email they had supposedly received from this staff member.
Upon investigation, it was discovered that criminals had taken control of that email account and changed the settings so that the staff member couldn’t see their ‘sent’ emails. It was also found that these criminals may have had access to the credit card details of 35,000 people stored on the hospice’s database. Thankfully there was no evidence that the credit card details were used, however it cost the charity £17,000 to deal with, and recover from, the cyber attack.
This is a good example of how easy it is for breaches to happen if the charity hasn’t taken appropriate cyber security measures — for example, providing training in how to spot a phishing email.
Thankfully, the most common cyber threats are relatively unsophisticated. Government guidance suggests that charities protect themselves using a set of “cyber hygiene” measures.
These include:
Using up-to-date malware protection
Restricting admin rights
Using two-factor authentication
Having a network firewall
Having agreed processes for reporting and dealing with phishing emails and messages
As well as having measures in place to try to prevent cyber attacks, it’s advisable to have cyber security insurance, particularly as there are cyber security risks posed by supply chains and third parties. The Cyber Security Breaches Survey 2024 reported that only 34% of charities had cyber security insurance.
According to the Cyber Security Breaches Survey 2024, only three in 10 charities said they had board members or trustees who were responsible for cyber security as part of their trustee role.
Given how common cyber security threats and breaches are, consider recruiting for a trustee with cyber security skills. They can then review current cyber hygiene measures and recommend steps to improve them, such as investing in software, anti-malware programmes and cyber security training for staff and volunteers.
Follow-up questions for CAI
How can trustees use cyber breach statistics to justify security investments?What effective cyber hygiene measures should charities implement immediately?How does recruiting a cyber-skilled trustee improve charity security governance?What role does cyber security insurance play in managing charity risks?How can real-life breach examples enhance trustee awareness and training efforts?Our courses aim, in just three hours, to enhance soft skills and hard skills, boost your knowledge of finance and artificial intelligence, and supercharge your digital capabilities. Check out some of the incredible options by clicking here.