013 - What changed in the fraud industry since the crisis‪?‬ The Human Factor

I would like to focus on three aspects how the fraud industry was and is affected by the pandemic 
Fraud Risks Anti-Fraud Programs Investigations 
Fraud Risks 
When it comes to the question how the pandemic affected the different risks of becoming a victim there were different areas to be taken up 
How was the risk landscape and risk management setup “before”? How did the landscape change? Where do we expect the journey to go? 
If there is no existing risk mapping the change can not be measured. We then only talk about the gut feeling but have no evidence.  
What I have seen at my clients cases is that not only the cases of social engineering in the territory of cyber increases, but also in the non-digital world. On an overall basis the risk of becoming a victim of social engineering increased significantly. 
And compared to the study from the ACFE it is exactly what also my colleagues experienced. The overall fraud level increased and will also increase within the next 12 months, that is what we all expect.  
In addition to that 50% of the participants already see that cyber fraud increased and the expectations go into the same direction.  
Cyber fraud will not remain the only fraud pattern.  
Identity theft Payment fraud Bankruptcy and Unemployment fraud (and here we talk about the social insurance fraud, credit fraud, etc.)  Fraud by vendors and sellers 
As well as  
Health care fraud Insurance Fraud Loan and bank fraud 
Plus the evergreen: Bribery and corruption 
will affect our organisations more in the future than ever in the past. 
So, what does that mean to us? I am convinced, if you are listening to this podcast, you have a high maturity level of integrity.  
Important is, that you are not the only lone enthusiast doing so in your organisation.  
You will have much more power if corporate integrity is a strategic priority and not just a “compliance task”.  
Summarizing how Covid-19 has impacted the fraud patterns we in our industry experienced and expect additional increases.  
With that knowledge I would expect from the decision-makers that actions and measurements are set up…. 
 Anti-fraud programs 
The normal process of preventing, detecting and responding to fraud does in real life not start with preventing in a way which could be called “effective prevention”. 
More often it starts with responding as a victim. 
With the evidence gained in the industry and published we would know that the fraud cases increased and increase. Wouldn’t we expect to have an increase in the anti-fraud program resources too?  
Less than 15% will significantly increase their overall investment into the anti-fraud resources. Less than 30% will slightly increase the spending.  
With these two first areas I would like to give you the food for thought of the take home assignment. The following two questions should challenge either your clients or your companies actual set up 
How does our risk landscape look like since the pandemic started with regard to the above mentioned fraud risks of  
Cyber fraud Identity theft Payment fraud Bankruptcy  Unemployment fraud  Fraud by vendors and sellers Health care fraud Insurance...