Education

Protecting your school payments

October 12, 2025

Security Risks and Compliance for UK Independent Schools

UK independent schools handle large volumes of payments every year, covering everything from tuition fees and trips to catering and extracurricular activities. As schools commonly use multiple platforms for different types of income and payments, managing cash flow can quickly become complex. Staff can easily get muddled, and it only takes one weak system, process, or uninformed member of staff to disrupt operations or expose the school to payment fraud, phishing scams, or cyber-attacks.

For school leaders and finance teams, understanding common payment threats and implementing proactive security measures is critical to protecting funds, staff, and families.

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The Rising Threat to Independent Schools

Recent research from the UK Government’s Cyber Security Breaches Survey for Education Institutions highlights the growing threats targeting UK independent schools:

  • 61% of UK independent schools have faced cyber-attacks in the past five years (Cyber Security Breaches Survey 2023 – Education Institutions Annex, gov.uk).
  • 6 out of 10 secondary schools experienced a cyber-attack or security breach last year (Cyber Security Breaches Survey 2024 – Education Institutions Annex, gov.uk).
  • Phishing attacks affect nearly 9 out of 10 primary and secondary schools (Cyber Security Breaches Survey 2024 – Education Institutions Annex, gov.uk).

These figures show that even well-managed schools are vulnerable if staff, systems, or processes are not robust.

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Common Payment Security Risks

1. Phishing and Impersonation Scams

Fraudsters often pose as suppliers or payment providers, sending emails or calls to request payments or sensitive information. Always verify unexpected requests directly with the supplier or platform before taking any action.

2. Weak or Fragmented Systems

Schools often rely on multiple platforms for different types of payments. Fragmented systems increase the risk of errors, missed invoices, or misapplied payments. One poorly configured system can compromise efficiency and security.

3. Insider Threats

Data breaches can originate internally. Weak, reused, or stolen login credentials can expose sensitive financial data. Robust access controls and monitoring are essential.

4. Regulatory and Compliance Risks

Schools are also legally required to perform Anti-Money Laundering (AML) checks, especially when dealing with politically exposed persons (PEPs). Failure to comply can result in serious financial and reputational consequences.

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Practical Steps to Protect School Payments

  • Strong Authentication: Use complex, unique passwords and enable multi-factor authentication (MFA).
  • Staff Education: Regular training helps staff recognise phishing emails, suspicious calls, and other scams.
  • Password Vaults: Securely store and manage login credentials to reduce risks.
  • Keep Systems Updated: Regularly patch software and financial systems to close security gaps.
  • Verify All Requests: Always double-check unusual payment requests with official channels.‍
  • Perform AML Checks: Ensure proper due diligence for high-risk payments and politically exposed individuals.

Why Security and Compliance Matter

Proactive security measures protect school funds, ensure smoother operations, and maintain trust with parents, staff, and the wider school community. Even small steps such as removing bank details from invoices, monitoring systems, educating staff, and performing AML checks, can significantly reduce risk.

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Solutions to Consider

While vigilance is key, schools can also use secure platforms to strengthen both payment safety and compliance. Cloud-native payment platforms like esenda help schools:

  • Remove sensitive bank details from invoices to reduce fraud risk
  • Monitor transactions and flag up unusual activity
  • Support AML compliance, including checks for politically exposed persons
  • Provide clear guidance and reporting tools for finance teams
  • Bring all payments under one roof, so income and outbound payments are easier to track and nothing gets missed

These features give independent schools peace of mind while streamlining payment processes.

Check out our pay by link options.

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Your questions, answered:

Q1: How can UK independent schools prevent payment fraud?

‍A: Schools can prevent payment fraud by removing bank details from invoices, verifying payment requests directly with suppliers, educating staff on phishing and impersonation scams, using secure platforms, and implementing multi-factor authentication (MFA). Solutions like esenda can help with this.

Q2: What are the AML requirements for schools in the UK?

‍A: Independent schools must perform Anti-Money Laundering (AML) checks when processing payments, especially for high-risk transactions or payments involving politically exposed persons (PEPs). Proper due diligence helps schools comply with regulations and reduce financial and reputational risks. esenda enables schools to carry our AML checks within the same payment platform.

Q3: How can staff identify phishing scams or suspicious payment requests?

‍A: Staff should be trained to recognise unusual emails, calls, or payment requests, always verify unexpected communications through official channels, and use password vaults or secure platforms to reduce the risk of compromised credentials.

Q4: What steps can schools take to secure multiple payment systems?

‍A: Schools should consolidate where possible, ensure all systems are updated and patched, enforce strong authentication, and implement monitoring to detect unusual activity across income and outbound payments.

Q5: How can cloud-native platforms support school payment security and compliance?

‍A: Platforms like esenda help schools secure payments by removing sensitive data from invoices, monitoring transactions, flagging suspicious activity, and supporting AML compliance, including checks for politically exposed persons.

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