Oakham Town Council has recently faced two significant attempts at fraudulent activity targeting its financial resources.
Oakham Town Council has recently faced two significant attempts at fraudulent activity targeting its financial resources.
In mid-September, the councils bank received a fraudulent cheque for £4,900. The bank identified the forgery and rejected the cheque and refunded the council, preventing any financial loss. This incident marks the second such attempt in two years, highlighting the persistent threat of financial fraud.
On October 1st, an unauthorised direct debit agreement was set up to transfer funds to eBay Commerce. The council's swift action in notifying HSBC led to the immediate suspension of the agreement and the recovery of the funds under the Direct Debit Guarantee.
In response to these incidents, the council has taken the following steps to bolster its security:
- Cessation of Signed Minute Publication: Following guidance from the Local Government Association (LGA), the council will no longer publish signed minutes to mitigate the risk of potential misuse of information such as the chairman's signature.
- Bank Account Transfer: The council is transferring its banking services to another bank to implement a two-signature authorisation system, further strengthening financial controls.
- Confidentiality of Financial Details: The council will no longer publicly disclose its sort code and account number to reduce the risk of unauthorised access.
The council has reported these incidents to the Police.
While these attempts at fraud were unsuccessful, they underscore the importance of robust security measures and vigilance in protecting public funds. Oakham Town Council says it remains committed to safeguarding its financial resources and ensuring transparency in its operations.
Editors Note: Oakham Town Council has been a victim of this type of fraud, prior to the two year period they state. Oakham Town Council has for a number of years appeared to be reluctant to change their bank account and introduce the two signature requirements. In 2023 DCK Accounting Solutions Ltd. stated that one member of the Council taking on this role is a 'weakness': "We would perceive this as a weakness and believe the Council should review the risks of only one person being able to use the software. They were also advised the chairman should not be the signatory on cheques and a number of other concerns were raised. They are not the only auditors to raise the same concerns.
