The Risk of COVID-19 Related Fraud
Compliance and ethical misconduct are often cause-and-effect relationships. 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, half of the 1,800 anti-fraud professionals surveyed expected their budgets to increase in the coming year.
Vendor scams, identity theft, cyber fraud, 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: