A global recession was expected in 2020 before the world was hit by a pandemic the likes of which had not been seen in 100 years. The 2008 global financial crisis demonstrated that fraud thrives when attention is focused elsewhere.
Means : Millions of jobs have been lost for good and hundreds of millions are under serious threat. Most employees are capable of perpetrating fraudulent acts in certain circumstances. A lack of job security combined with limited bonus prospects and excessive financial commitments will push some over that ethical cliff. Managements are also under pressure to mitigate poor financial performance that would drive share prices down further. This will lead to fraudulent financial reporting.
Payroll fraud: Substantial and sudden changes in workforce numbers lend themselves to “ghost” employees, overpayments and diversion of funds.
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