CAF Bank Suspends Online Services Amid Fraud Alert, Disrupting Charities

CAF Bank, a financial institution serving approximately 14,000 UK charities, has suspended its online banking portal following a fraud alert. The move has disrupted the operations of numerous grassroots organizations, including churches and YMCAs, which rely on CAF Bank as their primary banking service.

Alison Taylor, chief executive of CAF Bank, stated that the online banking service will be unavailable until further notice. The bank identified an issue with third-party software connected to its online banking portal. Taylor emphasized that the core banking system remains unaffected. "We are working with external experts to fix an issue we identified with third-party software related to our online banking portal," she said in a statement. "Importantly, the core bank is not affected."

The disruption comes at a particularly challenging time, occurring during the summer when many charities are running additional projects. Customers have reported difficulties accessing their funds, leading to frustration and a loss of trust in the bank. "Many of the grassroots organisations I represent - churches, YMCAs, vets - have CAF as their bank, but they are slowly losing trust in it," said one representative.

Taylor acknowledged the significant difficulties faced by customers and assured them that the bank is prioritizing time-sensitive payments, such as payroll, with additional staff available by phone. "We appreciate how difficult this is for our customers and want this to be resolved as quickly as possible, but we cannot restore access until we are assured the issue is safely resolved," she added. The bank is unable to provide a timeline for when online services will be restored, stating that access will only be granted once the issue is confirmed as safely resolved.