Opencollective Foundation

“From may 2020, until it was discovered and stopped in june 2022, ocf was the victim of fraud by an individual using the name "lorraine becker" ("lb"), who withdrew funds from our bank account using paypal. The total amount stolen was either $577,519.48 (declared by paypal) or $566,460.44 (total of fraudulent transactions identified), or $563,860.44 (total identified as fraud by umpqua bank). After we reported the fraud to paypal and umpqua bank, those institutions returned a total of $563,860.44 to our bank account. While our top priority goalgetting the money backhas already been achieved, there are outstanding aspects of the fraud situation that we still need to resolve. - process improvements: we're working with our auditors and accountants to proactively improve internal controls and revamp our systems and processes to be more savvy about fraud, with more detailed and robust oversight. - change banks: this experience has harmed our trust and confidence in umpqua, especially their security and fraud detection processes, and shown us that we may have outgrown this small local banking option. We are researching other banking options, with robust anti-fraud features in mind for our next bank if we switch. - reactivate our paypal: certain aspects of our paypal account were limited during this fraud investigation, pending the bank's dispute investigations, causing us not to be able to make expense payouts via the paypal api. We need to get our account returned to normal. - access review: currently both umpqua and paypal limit what they will discuss with team members other than pia, the creator of these accounts. We need to ensure key staff can problem solve if any issues arise (as this limitation slowed our ability to act at first with the fraud case). At the same time, we need to ensure security is robust against any unauthorized access. - insurance: we have informed our insurer that the funds were returned and therefore we may not be pursuing the claim, but we have yet to make a final decision. We also want to look into getting more insurance against cybercrime and bank fraud. - redress from a-team: we think that a-team is partially responsible for not detecting the fraud, and we're considering asking them to forgive some of their fees or otherwise contribute to the real costs ocf incurred from this. - comms to our community: transparency is very important to ocf, so we want to tell our community what happened in some form, now that the situation is mostly resolved. We will seek legal advice about this.”

“The 990 has been reviewed by a group of persons authorized to review financial and audit matters prior to filing. The final 990 (filed with the irs) will be available at the next meeting of the board for inspection. In addition, upon request of any boardmember, a copy will be provided. If there are any material changes, an amended 990 will be filed.”

“The organization enforces the conflict of interest policy by monitoring known relationships, questionnaires, and noting any changes in disclosed information.”

“Financial statements are available on the organization's website, other documents are made available to the public upon request.”

“The process has not changed from the prior year.”