Financial Crime World

Armenia Grapples with Financial Fraud Prevention Amidst COVID-19 Pandemic

Growing Concerns of Financial Fraud in Education

A recent study by experts from the National Information Centre on Academic Recognition and Mobility of Armenia (ArmENIC) and a Council of Europe expert has highlighted the alarming growth of financial fraud in education, particularly during the COVID-19 pandemic. The study, titled “Developments and Detection of Education Fraud: Risks and Responses in the COVID-19 Age,” emphasizes the need for urgent action to combat corrupt practices and fraudulent activities in Armenia’s educational sector.

Exacerbating Factors

The pandemic has exacerbated existing vulnerabilities in the education system, leading to an increase in cases of financial fraud. The rapid adoption of online learning platforms and digital technologies has created new opportunities for fraudsters to exploit weaknesses in institutional regulations and oversight mechanisms.

Key Findings

  • Corruption and fraudulent activities in Armenia’s education sector are rooted in a complex array of factors, including historical legacies and systemic shortcomings.
  • Existing codes of conduct and regulations have yet to demonstrate sufficient effectiveness in preventing financial fraud and ensuring transparency and accountability.

Recommendations

To address these concerns, the study recommends the following measures:

  • Increase Autonomy for Universities: Provide universities with more autonomy to make decisions and take actions to prevent financial fraud.
  • Ensure Equality between Public and Private Institutions: Ensure that public and private institutions are treated equally in terms of regulations, oversight, and access to resources.
  • Monitor Educational Documents: Implement a system to monitor educational documents, such as diplomas and transcripts, to detect potential fraud.
  • Create an Integrated Database: Establish an integrated database to track student data, academic performance, and financial transactions to prevent fraudulent activities.
  • Raise Public Awareness about Fraud and Corruption: Launch public awareness campaigns to educate students, parents, and educators about the risks of financial fraud and corruption in education.
  • Establish an Independent Committee for Inspecting Education Fraud: Set up an independent committee to investigate and address cases of financial fraud in education.

Future Plans

The study’s findings will be disseminated widely among Armenia’s education community and will inform follow-up activities related to ethics and integrity in education. The report will also be presented at the upcoming Council of Europe Platform on Ethics, Transparency, and Integrity in Education (ETINED) Plenary meeting in November 2022.

Availability

The full study is available for download in English, with an Armenian language version due to be released soon.