Fraud and pandemics

Abstract

Purpose This study aims to draw out the common characteristics of frauds associated with pandemics and to identify any risks unique to them. Design/methodology/approach It considers the range of frauds and their reporting lags and examines what is known about current frauds against individuals, businesses and government, principally using public and private sector data from Australia and the UK. Findings The study identifies some novel crime types and methodologies arising during the current pandemic that were not seen in previous pandemics. These changes may result from public health measures taken in response to COVID-19, the current state of technologies and the activities of law enforcement and regulatory guardians. It shows that many frauds would occur anyway, but some specific – mainly online – frauds occur during pandemics, and because of large scale government assistance programmes to businesses and individuals, far more opportunities were created from COVID-19 than in previous eras. Social implications The study concludes with a discussion of the policy implications for prevention, resilience and for private and public policing and criminal justice. It stresses that plans for future pandemics must include provisions for better early monitoring and control of fraud and associated procurement corruption and notes that these require greater political will and organisation. It recommends a more serious analysis of the impact of prevention communications outreach to citizens, businesses and government. Originality/value The study uses fresh data on frauds from the private and public sectors and assesses some measures of control in a holistic way.

The antecedents of COVID-19 contagion on quality of audit evidence in Egypt

“…These could be the outcome of COVID-19-related public health initiatives, the current state of technology, or the operations of law enforcement and regulatory guardians. It demonstrates that many frauds would occur anyway, but some unique - primarily online - fraud occurs during pandemics, because of large scale government aid schemes to businesses and individuals, COVID-19 created significantly more possibilities than prior times (Levi and Smith, 2022). The recession's harsh economic environment may have also affected auditor independence for clients who can exert audit fee pressure.…”

X Foro Internacional de Turismo Maspalomas Costa Canaria (FITMCC): El sector turístico ante un nuevo escenario

“…The high increase in online fraud has greatly impacted the travel industry. The travel industry has become a major target to fraudsters due to the sudden increase in the use of online platforms over COVID-19 measures and technological advances, (Levi, & Smith, 2021). According to Online Travel Agency (OTA), the global travel industry earns over $850 billion every year.…”

Who Avoids More? A Cross-country Evidence of Economic Policy Uncertainty and Tax Avoidance

“…Government relief programs during the COVID-19 pandemic can provide opportunities for individuals and businesses to commit tax crimes because the high volume of requests for program claims is not proportional to the supervision process carried out by tax authorities. Several studies documented tax stimulus fraud such as illegal claims to the Paycheck Protection Program and Economic Injury Disaster Loan COVID-19 in the US and the Coronavirus Economic Response Package Omnibus Act 2020 in Australia (Berger & Demirgüç-Kunt, 2021;Levi & Smith, 2022;Valiquette L'Heureux, 2022). In addition, the tax stimulus provided through the Business Compensation Scheme program by Norway, where the government provides subsidies to cover up to 90% of a firm's fixed costs, is used as a means for companies to carry out tax avoidance by reporting too high fixed costs (Haaland & Olden, 2022;Valiquette L'Heureux, 2022).…”