Skip to content
CVChecl logo
  • Products
    • Our Checks
      • National Police Checks
      • Employment Reference Checks
      • Employment and Qualification Checks
      • VEVO Visa and Work Entitlement
      • Credit, Financial and Business Checks
      • Traffic and Licence Checks
      • Predictive Psychometric Assessments
      • International Checks
    • ID Requirements
    • Verify a CVCheck Certificate
    • CVCheck Help
  • About Us
    • Who we are
      • Our History
      • Our Mission and Values
      • Our Board
    • Why CVCheck
    • Integration Partners
    • Investor Center
  • Blog
  • Contact Us
Menu
  • Products
    • Our Checks
      • National Police Checks
      • Employment Reference Checks
      • Employment and Qualification Checks
      • VEVO Visa and Work Entitlement
      • Credit, Financial and Business Checks
      • Traffic and Licence Checks
      • Predictive Psychometric Assessments
      • International Checks
    • ID Requirements
    • Verify a CVCheck Certificate
    • CVCheck Help
  • About Us
    • Who we are
      • Our History
      • Our Mission and Values
      • Our Board
    • Why CVCheck
    • Integration Partners
    • Investor Center
  • Blog
  • Contact Us
CVCheck Checkpoint logo
Search
Close
  • Categories
    • HR
    • Recruitment
    • Talent Acquisition
    • Jobseekers
    • CVCheck News
    • Product News
    • News Affairs
  • Product News
    • National Police Checks
    • Employment Reference Checks
    • Employment and Qualifications Checks
    • VEVO Visa and Work Entitlement Checks
    • Credit, Financial and Business Checks
    • Traffic and License Checks
    • Predictive Psychometric Assessments
    • Working with Children
  • Resources
    • Articles
    • Announcements
    • Case Studies
    • eBooks
    • Infographics
    • Testimonials
    • Videos
    • White Papers
Menu
  • Categories
    • HR
    • Recruitment
    • Talent Acquisition
    • Jobseekers
    • CVCheck News
    • Product News
    • News Affairs
  • Product News
    • National Police Checks
    • Employment Reference Checks
    • Employment and Qualifications Checks
    • VEVO Visa and Work Entitlement Checks
    • Credit, Financial and Business Checks
    • Traffic and License Checks
    • Predictive Psychometric Assessments
    • Working with Children
  • Resources
    • Articles
    • Announcements
    • Case Studies
    • eBooks
    • Infographics
    • Testimonials
    • Videos
    • White Papers

Fraudsters get creative in the wake of COVID

  • CVCheck By CVCheck
  • August 2, 2021
identity fraud

In the wake of COVID-19, it’s more important than ever for businesses to have comprehensive risk mitigation strategies to prevent fraud. Here are the current risks and how to safeguard against them.

In KPMG’s recent 2021 Fraud Survey, 72% of respondents indicated that the risk of fraud and corruption has increased over the past year.

Moreover, scammers are becoming increasingly creative in their attempts to swindle money. For instance, one new scam involves criminals requesting payment for early access to a COVID vaccine, while another offers non-existent investment opportunities in vaccine manufacturers.

It goes without saying that fraud is big business. Recent research published by PwC revealed the following:

  • Globally, fraud has cost firms $60 billion over the past two years.
  • Of the 5000 businesses PwC surveyed, more than one in five lost more than $7 million to crimes involving fraud.
  • About three per cent lost more than $140 million to scams, even before brand and reputation damage is taken into account.

We caught up with fraud experts Ajay Unni and Susie Jones for more insight.

Common types of financial fraud

  1. Cybercrime continues to skyrocket

    According to the Australian Federal Police (AFP), cybercrimes include “crimes directed at computers or other information communications technologies.” Examples include hacking, denial of service attacks and ransomware attacks.

    “Large-scale ransomware attacks such as the recent one on a US fuel pipeline and locally on Nine will continue to pose a threat to large and small corporations,” says Ajay Unni, founder of Stickman Cyber.

    Businesses must ensure they have up-to-date cyber security software to reduce the risk of cyberattacks. It’s also important to formally delegate responsibility for cyber security in the business, train staff to identify scam emails and consider buying cyber insurance. 

  2. Identity fraud on the rise

    The Office of the Australian Information Commissioner (OAIC) says identify fraud involves, “someone using another individual’s personal information without consent, often to obtain a benefit.”

    In 2021 alone, Australians have so far lost more than $2.5 million to identity theft scams, according to the Australian Competition and Consumer Commission’s Scamwatch data.

    Identity fraud has become increasingly common as criminals access swathes of personal information available on the dark web. Fraudsters use this information to create false personas to access bank details or even pose as someone else when applying for a job. As a result, it’s essential to verify the personal information of all new hires and customers.

  3. Email scams are hitting companies hard

    Invoicing fraud has become one of the most common cyber threats during COVID. “Successful frauds perpetrated this way have risen dramatically over the past year,” says Susie Jones, CEO and co-founder of cyber security firm Cynch.

    These attacks involve a staff member clicking on a phishing email and providing security information such as a username and password to a fraudster. The criminal then uses this information to log into the system and send fraudulent invoices to internal and external accounts teams.

    Jones says enabling two-factor authentication on emails and introducing programs to help staff distinguish real and fake emails are two important measures when it comes to combatting invoice fraud.

    “Also put verification processes in place to check bank details for high-risk transactions,” she recommends.

Stopping fraudsters in their tracks

While fraud may be on the rise, there are plenty of actions businesses can take to reduce the risk to their operations. 

  1. Budget for fraud prevention

    It’s critical that companies provide space for combatting fraud in the budget. This is important, given PwC’s research indicates only 34%  of survey respondents have formal risk assessment processes.

  2. Have fraud prevention policies in place

    Organisations must develop an overarching governance framework to guide executives’ approach to combating fraud. This includes setting out guidelines and policies for conducting investigations into fraud, and clearly articulating disciplinary measures.

  3. Conduct thorough background screening

    Finally, it’s important you know your company – around 24% of financial fraud is committed by internal contacts. Thorough background screening of all new and existing employees will ensure your people are fit to work in their roles. Establishing a clear yet robust background screening policy will govern this process, and establish a more trusting and open relationship with your team.

    Likewise, it’s also crucial you know who you’re going into business with. More than half of all financial fraud is committed by business ‘outsiders’. Ensure your customers are who they say they are, and are fit to do business with, by running KYC (Know Your Customer) checks.

Looking ahead

As for the future, expect new technologies to keep driving frauds and scams.

We will continue to be targeted by smart tech like automated phone calls from hackers pretending to be the tax office, with the scale and scope of these scams rising exponentially.

Ajay Unni, founder of Stickman Cyber Tweet

It is essential that businesses take a holistic approach to tackling fraud. Fraud prevention must be a priority for management and the board, who are charged with overseeing formal governance processes that determine how to combat fraud from the top down.

This is the best way to enmesh a culture of fraud prevention right across the business, and stop fraudsters in their tracks.

CVCheck logo icon

CVCheck is a leading provider of background screening services in Australia and New Zealand, conducting over 300,000 checks every year for businesses, government organisations, and individuals. To learn more about our team and business, sign up to our blog today.

Recent Articles

certification for quality control, which ensures that the company product meets its standards. on the virtual screen, there is a concept.

Organisations may not have the visibility needed to comply with the Critical Infrastructure Protection Bill

blog headers

Managing the burden of government oversight with ease

Child Worker Checks To Lower Child Abuse

Children’s Worker’s Safety Checks: How they can help lower NZ’s alarming child abuse statistics

businessman hand stopping falling blocks on table

Mitigating the risk factors your organisation faces every day

Browse by

Category

  • HR
  • Recruitment
  • Talent Acquisition
  • Jobseekers
  • CVCheck News
  • Product News
  • News Affairs

Product

  • National Police Checks
  • Employment Reference Checks
  • Employment and Qualifications Checks
  • VEVO Visa and Work Entitlement Checks
  • Credit, Financial and Business Checks
  • Traffic and License Checks
  • Predictive Psychometric Assessments
  • Working with Children

Resource

  • Articles
  • Announcements
  • Case Studies
  • eBooks
  • Infographics
  • Testimonials
  • Videos
  • White Papers

You may also like

Loading...
Organisational-fraud-Infographics-CVCheck-Checkpoint-840-2
Organisational fraud in Australia
Uk Exam Board Put To Test And Failed
UK exam board put to test and failed
How To Combat Risks With Aml Checks
Why AML checks are essential: PwC’s Peter Forwood explains how to combat risk
Employment-Scams-Infographics-CVCheck-Checkpoint-840
Employment scams are on the rise
CVCheck Checkpoint logo
Powered by
CVCheck logo white

Browse checks

  • National Police Checks
  • Employment Reference Checks
  • Employment and Qualification Checks
  • VEVO Visa and Work Entitlement
  • Credit, Financial and Business Checks
  • Traffic and Licence Checks
  • Predictive Psychometric Assessments
  • International Checks

Quick links

  • About Us
  • Resources
  • CVCheck Help
  • Contact Us

Checkpoint Newsletter

Subscribe now

Connect with us

Facebook-f Linkedin-in Twitter Youtube Instagram
  • Copyright 2022 - CV Check Ltd
  • Privacy Policy
  • Terms of Access

Get the latest news straight to your inbox

Checkpoint provides smart and creative insights in the form of useful tips, resources and relevant information. Each month we will send you the best updates so you stay informed.