CAF Bank suspended online services on 24 July after suspected cyber fraud, affecting more than 14,000 non-profit customers and disrupting payroll and supplier payments for some charities. Local groups such as Maidstone's 21 Together say staff wages are at risk and criticised poor communications. CAF Bank's CEO apologised, confirmed core systems are unaffected and said external experts are working to fix third-party software while prioritising time-sensitive payments.
Charities Face Payroll Crisis After CAF Bank Suspends Online Services Amid Suspected Cyber Fraud
Many good causes have been left feeling powerless as payday looms [PA Media]
Charities across South East England have warned they may be unable to pay staff or suppliers after CAF Bank suspended its online banking service on 24 July following reports of suspected cyber fraud.
CAF Bank, based in West Malling, Kent, provides services to more than 14,000 non-profit organisations UK-wide. The suspension has disrupted vital day-to-day operations for some groups, including payroll and supplier payments.
Impact On Local Charities
Maidstone-based 21 Together, which supports people with Down's syndrome, said the outage has put staff wages at risk. Chief executive Kevan Hodges, who manages a 13-strong team of education specialists and part-time staff, described the situation as "appalling." He said many employees are worried about missed pay and the financial stress that would follow.
"People are concerned that wages won't get paid because of this, and that's just stressful when they have bills to pay," Hodges said. "My team have wasted days trying to get through to CAF Bank, but all in vain."
Frustration Over Communications
Grassroots representatives have criticised the bank's communications. Bali Rodgers, chief executive of Safer Communities Alliance, said many local organisations — including churches, YMCAs and small charities — rely on CAF Bank and are losing trust due to inconsistent information and a lack of reassurance.
Bali Rodgers, who works with lots of grassroots charities, said the situation had made her angry [BBC]
"People cannot access their own funds and have been left feeling powerless — it makes me really angry," Rodgers said, adding that the timing was especially harmful because summer is a busy period for extra projects.
Bank Response
In a statement, CAF Bank chief executive Alison Taylor apologised for the disruption and said the bank had notified customers that online banking would be unavailable "until further notice." Taylor said the issue relates to third-party software used by the bank's online portal and that the bank's core systems are not affected.
She added that the bank is working with external experts to resolve the problem, cannot restore access until the issue is deemed safe, and is providing additional telephone support while prioritising time-sensitive payments such as payroll.
What Customers Can Do
Charities affected should keep records of urgent payment needs, persist with telephone contact where possible, and consider alternative short-term arrangements for payroll (for example, using contingency funds, short-term loans, or manual BACS through accountants) while the bank works to restore secure access.
If you are a CAF Bank customer with an urgent payroll issue, contact the bank's support lines and document all communications.
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