Regulator Downgrades HA Hit By Criminal Fraud Worth Nearly £1m

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.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/861113/Red_Kite_Community_Housing_Limited_RJ_29.01.20.pdf