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COVID 19 Pandemic increase financial crimes in Europe

23 JUL 2020

23 JUL. 2020 / por Diego Silveira

Today’s new scenario

Finance institutions are always worried about crimes such as corruption, money laundry, bribe, frauds, and others, nonetheless, they are and had always been huge targets for this kind of actions.

The COVID-19 pandemic brought a new scenario to the table, with a wounded economy, postponed investments, companies with reduced activity, decrease in confidence of consumers, and an increased unemployment rate, people start to act more emotionally and consequently being easier to get involved in illicit acts.


Financial institutes are being the most affected by frauds and illicit acts


In Europe crimes of financial origin increased considerably and banks are searching for new measures to contain caused damage and to prevent possible new risks.


The Exame Magazine(Brazil), published on April 4th an article about the surge of frauds in Europe, with an alert of a regulatory finance agency from Austria about a possible increase in criminal activity against banks. According to the magazine, the drastic changes in the economy and in cluttered markets are the causes for the increased number os frauds against banks.


Austria warning to every country!


According to the agency “The fraud activities in financial markets related to COVID-19 pandemic already increased a lot, and these crimes are already known, but now they have a new shape due to the new challenges created by COVID-19.


In Austria, they highlighted in the article a fraud known as “CEO Fraud”


This fraud model aims to make executives transfer money, in order for the safe procedures do not identify any atypical action, and benefit from what they stole from banks


How to decrease illicit acts in financial institutions in this scenario?


These are some tips and practices that are really useful in fraud cases and money laundering prevention.

-Implement an efficient compliance program. If there is one, it is essential to review all practices to find new standards and rules

-Third-party checking to ensure ethic in all company relations: employees, third-parties, investors, and partners

-Seek efficient technological solutions. They will allow the company to optimize their team time to invest them in strategic activities as risk management. Besides that, technological tools are responsible for an improvement in services provided by banks.

-Use data mining in your favor. Big Data technology is capable to open new business opportunities, identify risks and allow companies to have reports in hands with relevant data, helping the decision-making process

-Keep the reporting channel online. These practices is highly known to act against corruption, fraud, and other cases of illicit acts. In the pandemic moment that we are living where most of banks employees are working from home, it is essential that the reporting channel is working online perfectly



UpMiner: Data mining platform quite know in finance institutions


upMiner is a data mining solution created to automate compliance practices, information collect, third-party check, search for conflict of interest, money laundry prevention, market intelligence, and decision-making process


The platform brings structured reports with relevant data in real-time so analysts, managers, and directors have more knowledge to make difficult decisions, as for example:


-Third-party check – employees, suppliers, clients, partners, and investors

-Investigate possible connections between relations of your interest

-Have complete reports that are used as a document about companies and persons

-Have knowledge about assets, properties, brands and patents in the name of the person or entities