CAF Bank freezes online access for 14,000 UK charities amid fraud fears
A suspected cyber fraud incident has forced CAF Bank to suspend online services for over 14,000 UK non-profits, threatening payroll operations and exposing vulnerabilities in the financial infrastructure supporting the charitable sector.
CAF Bank has suspended online banking services for its customers following reports of suspected cyber fraud. The outage, which began on 24 July, has left charities across the United Kingdom unable to access their accounts.
The West Malling-based institution serves more than 14,000 non-profit causes nationwide. This disruption threatens the operational stability of the charitable sector, directly impacting essential functions such as payroll and supplier payments.
Maidstone-based organisation 21 Together, which supports people with Down’s syndrome, has been unable to manage its payroll. Chief executive Kevan Hodges, who manages a 13-strong team of education specialists and part-time staff, described the situation as appalling.
Hodges highlighted the human impact of the freeze. "People are concerned that wages won't get paid because of this, and that's just stressful when they have bills to pay," he said. He added that his team wasted days trying to contact the bank, only to be told to fill out an online form that would be reviewed the following day.
Frustration is mounting among other sector leaders as well. Bali Rodgers, chief executive of the Safer Communities Alliance, stated that the grassroots organisations she represents, including churches, YMCAs and vets, are slowly losing trust in the institution.
Rodgers criticized the bank for providing inconsistent information and failing to offer any reassurance. "People are unable to access their own money and have been left feeling powerless - it makes me really angry," she said. She emphasized that the summer timing is particularly damaging, as many extra projects are currently running.
In response, CAF Bank chief executive Alison Taylor apologized for the disruption. She confirmed that the online banking service remains unavailable until further notice while the institution works with external experts.
Taylor explained that the suspension stems from an issue with third-party software related to the online banking portal. She stressed that the core bank is not affected, but access will not be restored until the institution is assured the issue is safely resolved.
The bank stated it has deployed extra phone teams to support customers during the outage. Taylor added that they are actively prioritizing time-sensitive payments, such as payroll, to mitigate the immediate financial strain on non-profit operations.
