Fraud schemes during COVID-19: a comparison from FATF countries

Abstract

Purpose

This study aims to define fraud crimes, its most prevalent categories and examines the most common of these schemes during the COVID-19 pandemic by drawing on the experiences of several countries and the Financial Action Task Force’s (FATF) updated paper issued during the pandemic.

Design/methodology/approach

This study uses a comparative analysis methodology in conjunction with a descriptive analytical approach to compare four FATF member countries in light of the fraud activities that occurred on their territory during the pandemic and their respective law enforcement measures. It makes use of secondary data sources, namely, the theoretical literature on the subject and FATF’s updated paper on money laundering and terrorism financing during COVID-19.

Findings

This study found that fraudsters exploited the difficult circumstances during the pandemic in the majority of countries worldwide and identified various fraud schemes based on the incidents reviewed, such as the abuse of economic stimulus in Italy, counterfeiting medical goods in Brazil and investment fraud schemes in California, USA. In Spain, the fraud schemes tended to be cyber related. Such variations were also observed by the law enforcement agencies in the above-mentioned countries.

Originality/value

Numerous studies on fraud schemes are available to researchers. However, few such studies have been conducted during the COVID-19 pandemic. Therefore, this study makes a unique contribution to the literature.

Citation

Murrar, F. (2022), "Fraud schemes during COVID-19: a comparison from FATF countries", Journal of Financial Crime, Vol. 29 No. 2, pp. 533-540. https://doi.org/10.1108/JFC-09-2021-0203