Lack of cyber security risk management software exposes third sector to increased threat of cyber fraud
- Over half (57 per cent) of charities are concerned about the rising threat of cyber-crime to their organisation
- 27 per cent say they had been a target of cyber fraud and 20 per cent had experienced a health and safety breach in the past 12 months
- Increased adoption of technology within the sector is putting many at risk
- Despite this, just 24 per cent had introduced risk management software and security monitoring tools
Less than a third (24 per cent) of charities, social enterprises or not-for-profit organisations have introduced the necessary cyber security risk management software to prevent themselves from falling victim to data breaches or cyber-attacks, new research from Endsleigh reveals.
The Rewarding Industries 2023 report surveyed financial decisionmakers across the third sector to analyse how organisations are responding to the challenges faced in today’s climate. It has revealed how charities are lagging behind in their defence response to cyber security, despite the fact that 57 per cent fear that their organisation faces an increasing threat of cyber-crime.
As more organisations look to integrate technology into their fundraising models, many charities are exposing themselves to threats of cyber-attacks. In the last 12 months alone, 27 per cent say they had been a target of cyber fraud and 20 per cent had experienced a health and safety breach. And for cyber insurance, only a third of charities reported being insured, with just 11 per cent reviewing the risks posed by their digital suppliers, as found in the Cyber security breaches survey 2023.
The most popular uses of technology within the third sector include the adoption of technology to support new fundraising efforts (40 per cent), increasing the amount of fundraising happening online (33 per cent), investment in digital payments systems (32 per cent) and the use of online games to encourage donations (27 per cent).
Alison Meckiffe, CEO Endsleigh Insurance, says: “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.
“At Endsleigh, we are passionate about protecting third sector organisations. As specialists in the sector, we provide tailored cyber insurance services to charities, social enterprises and not-for-profit organisations based on their individual needs.”
