A housing association that fell victim to criminal fraud
has been downgraded for governance by the Regulator of Social Housing (RSH)
after suffering a “significant financial loss”. Red Kite Community
Housing has said that the loss, which it attributed to human error, is believed
by current assessments to have totalled £932,691.48. It said “all indications”
were that criminals had been able to launch the fraudulent attack in August
because of “a breach of an external source’s computer systems”. In its
regulatory judgement, published today, the RSH downgraded the provider to G2,
from G1, citing a “basic failure in [Red Kite’s] system of internal controls”.
Read more on the RSH website.
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