An informed man is worth two …
The global health crisis caused by COVID-19 is physically and psychologically weakening the world’s population, making it an easier target for criminals.
Criminals take advantage of this exceptional situation, and the fear it engenders, to enrich themselves by adapting and diversifying their activities. However, it is interesting to note that, in general, criminal activity and the modus operandi used by criminals did not change particularly during the pandemic. Indeed, INTERPOL has seen an increase in counterfeit medical products, scams and cybercrime(https://www.interpol.int/fr/Notre-action/COVID-19) since the appearance of COVID-19, criminal activities that were already known before the pandemic.
Overview of the economic crime around Covid-19
In these times of pandemic, financial crime ranges from simple theft or fraud committed by malicious individuals to large-scale operations orchestrated by organized criminals present on all continents. Here are some representative examples:
Telephone scam
The criminals call the injured and pretend to be employees of a health entity; they claim that a person close to the injured person has contracted Covid-19 and ask him to pay for his medical treatment(https://www.interpol.int/fr/Infractions/Criminalite-financiere/Criminalite-financiere-ne-tombez-pas-dans-le-piege).
Infractions linked to the allocation of Covid-19 credits guaranteed by the Swiss Confederation
In Switzerland, in order to provide companies in financial difficulty with the liquidity they need to survive, Covid-19 credits have been granted to approximately 136,000 Swiss companies. However, taking advantage of a simplified and fast Covid-19 loan granting procedure, companies are suspected of having committed offences, in particular frauds(https://www.rts.ch/info/suisse/11562721-plus-de-400-prets-durgence-de-la-confederation-sous-enquete-penale.html). According to the statistics produced and published by the State Secretariat for Economic Affairs (SECO), there are currently more than 800 cases of potential abuse being clarified and 79 proceedings underway for a total criminal amount of approximately CHF 14 million(https://covid19.easygov.swiss/fr/pour-les-medias/). In addition, the Swiss Money Laundering Reporting Office (MROS) has reported more than 400 cases related to the awarding of Covid-19 loans for money laundering to the criminal prosecution authorities(https://www.fedpol.admin.ch/fedpol/fr/home/kriminalitaet/geldwaescherei/ueberbrueckungskredite.html).
Delivery Failure Scam
: Criminals dupe their victims looking to purchase highly sought-after items in this time of pandemic, such as surgical masks and other medical supplies, using fake websites, stores, social media accounts or email addresses. Then they pocket the money and never deliver(https://www.interpol.int/fr/Infractions/Criminalite-financiere/Criminalite-financiere-ne-tombez-pas-dans-le-piege). In this criminal scheme, one must be aware of the fact that the injured parties are not only private individuals, but can also be the health authorities of a state. The type of activity is then more of an organized crime than a simple fraud. As an example, INTERPOL recently co-ordinated an international investigation into an elaborate scam combining hacked e-mail addresses, fraudulent cash advances and money laundering targeting German health authorities(https://www.interpol.int/fr/Actualites-et-evenements/Actualites/2020/Bas-les-masques-une-escroquerie-internationale-au-COVID-19).
Fraudulent trade and sale of counterfeit medical equipment
The sale of counterfeit medical equipment is similar to the above-mentioned fraudulent delivery scam and is carried out in exchange for the delivery of goods that are real but of poor quality and therefore dangerous(https://www.interpol.int/fr/Actualites-et-evenements/Actualites/2020/Une-operation-mondiale-met-au-jour-une-augmentation-des-faux-produits-medicaux-dans-le-contexte-de-la-COVID-19).
Cyber attacks
A report from INTERPOL shows a very worrying rate of cyber attacks during COVID-19. He also notes that the type of people harmed by these pandemic cyberattacks has changed. Indeed, attacks currently target large corporations, governments and critical infrastructure more than individuals and small businesses. One reason for the change in target type is that the health crisis has pushed organizations and businesses to favor remote systems and networks that allow staff to telecommute. Criminals then use security weaknesses to obtain or subtract data and thus generate profits. Major attacks include online scams, malware against hospital infrastructure with ransomware demands, fraudulent websites about Covid-19, and misinformation including malware(https://www.interpol.int/fr/Actualites-et-evenements/Actualites/2020/Un-rapport-d-INTERPOL-fait-etat-d-un-taux-de-cyberattaques-tres-preoccupant-durant-le-COVID-19; https://www.melani.admin.ch/melani/fr/home/themen/covid-19.html). The WHO, for its part, has raised awareness of identity theft through email and WhatsApp campaigns that encourage the recipient to click on malicious links or open attachments in order to collect usernames and passwords to misappropriate assets (https://www.who.int/about/communications/cyber-security).
Migrant smuggling
Traffickers take advantage of the various measures taken to slow down the spread of Covid-19 in order to make more money. Indeed, by using false information, they are able to persuade vulnerable people to use their services at a high fare, especially when travel restrictions make travel more difficult(https://www.interpol.int/fr/Actualites-et-evenements/Actualites/2020/L-impact-du-COVID-19-sur-le-trafic-de-migrants-et-la-traite-d-etres-humains).
Mafia activities
During this exceptional period, the mafia is likely to launder money by lending much needed cash to some small entrepreneurs in financial difficulty due to the health crisis(https://www.laliberte.ch/news-agence/detail/face-au-coronavirus-la-mafia-plie-mais-ne-rompt-pas/558783).
Reactions of the authorities and their recommendations
After this broad, but non-exhaustive, overview of financial crime in these times of pandemic, it is legitimate to ask what the authorities’ reaction is to the emergence of this crime and whether they issue any recommendations or advice.
At the international level, INTERPOL mentions periodically alerting its members about the threats encountered. The organization has also published a report and a guide on this subject for the various police services. In addition, it regularly informs the public through its website, Twitter, Facebook and LinkedIn(https://www.interpol.int/fr/Actualites-et-evenements/Actualites/2020/Prevenir-la-criminalite-et-proteger-la-police-INTERPOL-publie-une-evaluation-des-menaces-mondiales-liees-au-COVID-19; the web link for INTERPOL’s support to the public is: https: //www.interpol.int/fr/Notre-action/COVID-19).
In Switzerland, the various cantonal police forces publish recommendations on their websites and social networks, as well as raise awareness of the problem (e.g. https://www. policevalais.ch/communiques-pour-les-medias/coronavirus-attention-aux-arnaques/; https://votrepolice.ch/cybercriminalite/cybercriminalite-et-coronavirus/). The Reporting and Analysis Centre for Information Assurance (MELANI) also issues general recommendations(https://www.melani.admin.ch/melani/fr/home/themen/covid-19.html).
Conclusion
Both individual criminals and large-scale criminal organizations have found new opportunities to make money from their criminal activities in this time of pandemic without having to significantly change their modus operandi.
It is therefore possible to say that the crisis generated by Covid-19 has been beneficial to economic crime.
Faced with this multi-faceted crime wave, the authorities have reacted by coordinating and disseminating numerous tips on the internet and through social networks so that the general public is aware of the risks and knows how to react to a threat.
Indeed, in the field of economic crime, prevention is better than cure.
It should be recalled that the Institute for Economic Crime Control (ILCE) is currently conducting a study on economic fraud and abuse related to Covid-19. Witnesses or aggrieved parties to COVID-19-related fraud, cybercrime or economic abuse can share their experiences on the dedicated website www.coronafraude.ch.
