COVID-19 Epidemic: A New Arena of Financial Fraud?

Karabagh International Congress of Modern Studies in Social and Human Sciences 2021

7 Pages Posted: 11 Aug 2021

See all articles by Cevdet Kizil

Cevdet Kizil

Istanbul Medeniyet University

Vedat Akman

Beykent University

Erol Muzır

Istanbul Medeniyet University

Date Written: June 17, 2021

Abstract

The COVID-19 epidemic is going on as a serious health problem and threat. Indeed, it is also a devastating financial and economic problem. Unfortunately, the COVID-19 epidemic is causing many firms to shut down and go out of business. This triggers unemployment and instability in countries all over the World. The developed countries armed with higher funds are able to better support their citizens and businesses compared to developing and underdeveloped countries. All countries implement different measures to eliminate the several negative effects of COVID-19 epidemic, which has undesired reflections on numerous sectors such as the health, education, tourism, food & beverages and manufacturing industries. This paper argues that, the COVID-19 epidemic in fact has deeper reflections and it may be a new arena of financial fraud. Based on this research, citizens and governments must be extra careful about the new types of financial fraud observed as a result of the COVID-19 epidemic. Also, additional and new measures are needed such as awareness and training on the subject. Especially, emerging financial fraud related to information technologies (IT) require special attention. This article suggests that, firms as well as governments must operate their internal controls and internal auditing mechanisms efficiently in order to prevent the negative consequences and financial fraud arising as a result of the COVID-19 epidemic. Emerging new types of financial fraud in the COVID-19 epidemic era and recommendations to minimize their negative effects are discussed.

Keywords: COVID-19, Finance and Financial Fraud, Internal Controls and Internal Audit

JEL Classification: G01, I150

Suggested Citation

Kizil, Cevdet and Akman, Vedat and Muzır, Erol, COVID-19 Epidemic: A New Arena of Financial Fraud? (June 17, 2021). Karabagh International Congress of Modern Studies in Social and Human Sciences 2021, Available at SSRN: https://ssrn.com/abstract=3899275 or http://dx.doi.org/10.2139/ssrn.3899275

Cevdet Kizil (Contact Author)

Istanbul Medeniyet University ( email )

D-100 Karayolu
Merdivenkoy Mevkii No:6/1 Goztepe/Kadıkoy
Istanbul
Turkey

Vedat Akman

Beykent University ( email )

Buyukcekmece
Istanbul, 34900
Turkey

Erol Muzır

Istanbul Medeniyet University ( email )

D-100 Karayolu
Merdivenkoy Mevkii No:6/1 Goztepe/Kadıkoy
Istanbul
Turkey

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