Fraud is a major problem for aid organizations. In 2018, Mercy Corps discovered it had been scammed out of $639,000 from its rapid response program in the Democratic Republic of Congo. Between 2014 and 2016, the International Federation of Red Cross and Red Crescent Societies lost at least $6 million of its Ebola emergency appeal to fraud and corruption. And in 2014, Oxfam announced it had lost £65,000 following fraudulent invoicing by a former head of counter fraud.
The development sector is an easy target for fraud, said Anjie Enabor, principal consultant at Findev Consulting, who blames a lack of robust processes and the need for online transactions.
She explained that NGOs face many different types of fraud. One of these is internal fraud, where employees might be involved in siphoning money, perhaps through corruption, bribery, or money laundering.