Covid-19: Fraud & Compliance Risks

Due to the current corona situation, companies have sent their employees to home office wherever possible. This has led to the fact that the usual work processes can no longer be easily adhered to.

Employees are no longer able to obtain a signature or a visa quickly and easily. The important instrument of social control is only partially effective. In otherwise lively office floors and factories, life has virtually come to a standstill; only a few employees are still on site. This crisis also creates a multitude of "dark" corners. Those risks have to be tackled. Nevertheless fears about one's own economic survival also increase the risk that a company will become the victim of white-collar crime by its employees, third parties or business partners.

In concrete terms, the risk of economic delinquency and "non-compliance" by these three groups could also occur in your company, for example, as follows:

Employees

Business partners

Third parties

  • Bypassing internal controls
  • Compliance Violations
  • Embezzlement & Theft
  • Balance sheet manipulations
  • Violation of trade secrets & data protection
  • Manipulation of covenants
  • Infringements, subsidy fraud
  • Manipulation of thresholds (e.g. in connection with earn-out clauses)
  • CEO Fraud
  • Cyberattacks
  • Phishing

Concrete examples

  • Fraudsters who, on behalf of the Chief Executive Officer, instruct the accounting or finance department to initiate a payment to a fraudulent account
  • Manipulation of financial reporting, for example to conceal an over-indebtedness according to Art. 725 OR
  • Decentralised working, the associated weakening of the internal control system and the crisis-related emergency mode can lead to an increase in embezzlement (e.g. through the feed-in of fictitious service invoices or excessive expense claims)

Our forensic specialists are delighted to answer your questions. Please use the form below or contact us directly via email or phone.

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