Education

How to Prevent Fraud in School Fee Collection in 5 Steps (2026)

June 23, 2026

School fee fraud is a growing problem. According to IRIS Education research, every UK private school has experienced at least one fee payment scam or attempted fraud in the last five years, with affected parents losing an average of £3,200.

Fraudsters increasingly target payment journeys between schools and families, impersonating schools, sending fake invoices, and diverting payments. Beyond financial loss, these incidents damage trust and create significant administrative burden.

Here's how schools can reduce fraud risk and protect fee income.

Quick Guide: 5 Ways to Prevent School Fee Fraud

  1. Audit your payment processes
  2. Remove bank details from invoices
  3. Use a secure payment platform
  4. Train staff on fraud awareness
  5. Create clear payment communication protocols

1. Audit Your Payment Processes

Start by reviewing your fee collection workflow from invoice creation through to reconciliation.

Ask:

  • Who can access or change payment details?
  • How are bank account changes verified?
  • How are unidentified payments handled?
  • Are payment, recording, and reconciliation duties separated?

Identifying weaknesses gives you a clear starting point for improvement.

2. Remove Bank Details From Invoices

Including bank account details on invoices creates an opportunity for fraudsters to intercept communications and replace legitimate account information with their own.

Instead, direct parents to a secure payment portal. This removes sensitive banking information from documents and ensures payments are made through a verified channel.

3. Use a Secure Payment Platform

Generic finance tools aren't built for the complexity of school fee collection.

Look for a platform that provides:

  • Secure, encrypted payment processing
  • Role-based access controls
  • Real-time payment visibility
  • Automatic reconciliation
  • Integration with MIS and finance systems

esenda centralises payments through secure hosted checkout, reducing risk while giving finance teams full visibility of every transaction.

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4. Train Staff on Fraud Awareness

Anyone involved in handling payments should understand common fraud tactics.

Training should cover:

  • Phishing and suspicious emails
  • Verification procedures for payment changes
  • Escalation processes
  • Reporting near misses as well as actual incidents

Creating a culture where staff feel comfortable questioning unusual requests is one of the most effective fraud prevention measures.

5. Create Clear Payment Communication Protocols

Parents should know exactly what legitimate payment communications from your school look like.

Best practice includes:

  • Never requesting bank detail changes by email
  • Using a consistent payment portal or domain
  • Encouraging parents to verify unexpected requests directly with the school
  • Providing invoices through a secure parent portal

Regular reminders help parents spot fraudulent communications before making a payment.

Common Warning Signs of Fee Payment Fraud

Watch for:

  • Email addresses that closely resemble your school's domain
  • Requests to pay into a new bank account
  • Unusual urgency or pressure to pay immediately
  • Unexpected invoices or payment requests
  • Parents claiming payment has been made when records show otherwise

Early detection can prevent significant financial losses.

How esenda Helps Protect School Fee Collection

esenda provides a secure, centralised payment platform designed for schools.

With secure payment portals schools no longer need to include bank details on invoices, removing one of the most common fraud risks. Automated reconciliation, role-based permissions, and real-time payment tracking give finance teams greater visibility and control.

Schools using esenda report:

  • 19% fewer late payments
  • 95% parent adoption of payments through esenda

By simplifying and securing payment journeys, schools can reduce fraud risk while improving the parent experience.

Book an esenda demo to see how secure payment workflows can protect your school.

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