The Risk of COVID-19 Related Fraud

The Risk of COVID-19 Related Fraud

Compliance and ethical (mis)conduct are often a cause and effect relationship. Layoffs and reductions in the workforce typically cause an increase in helpline reports. Excessive pressure to meet sales targets can increase the risk of bribery/corruption. A poor culture often goes hand in hand with ethical misconduct.

A similar pattern can be seen with pandemics and fraud – a recent survey (Fraud in the Wake of COVID-19: Benchmarking Report) showed a marked increase in fraud risk:

  • 68 percent said they had already seen an increase in fraud activity at their organizations since Covid-19 began;
  • 93 percent expect fraud to increase over the next 12 months, and 51 percent expect a significant increase;
  • Cyberfraud (defined as business email exploits, malware, and ransomware) is leading the way, with 81 percent of respondents already seeing an increase in those specific threats in the last three months.

However, on a more positive note, of the 1,800 anti-fraud professionals surveyed, half expected that their budgets would increase in the coming year.

Vendor scams, identity theft, cyberfraud, and embezzlement are all mentioned as having seen significant increases and are expected to increase even further over the next 12 months.

Below are links to some of our training courses that can support you in preventing fraud from becoming an issue at your organization.

For more information, see:

Florkowski has over 20 years’ experience in the ethics and compliance industry. She has worked for Fortune 500 corporations, most recently as Global Compliance Officer of Chubb, responsible for building compliance programs from the ground up. In doing so, she gained extensive experience and is conversant in all aspects of managing an effective compliance program, including eLearning and whistleblower programs. Additionally, Florkowski assisted organizations in implementing compliance training programs when she worked at several service providers. In these roles, she became familiar with the range of challenges faced by compliance officers in managing their programs.

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