In a typical working environment in which 'fraud and corruption' is as normal as a headache or as common as a cold, everyone in the organization has a role to play in finding and deterring fraudsters. Despite universal acknowledgement that these things may be illegal but still prevalent, managers still treat them as 'someone else's problem' or 'something that happens to other businesses, not ours’. This book shows, in simple terms, how everybody can become a successful fraud detective. A series of proven and easy-to-follow recipes show how to find the tell-tale signs of fraud and corruption and work with colleagues to deal with fraud smartly, keeping the organization you work for healthy and clean.
The skills taught in this book are based on over 25 years’ experience of successfully finding and dealing with fraud and corruption, all around the world. How to Find Fraud and Corruption offers wayfinding techniques for identifying and recognizing common frauds such as: suppliers who charge too much; sharp business partners and consultants who are taking you for a ride; customers who take but prefer not to pay. It also shows how to spot and unravel more complex but equally serious and common frauds: hidden connections to dirty money centres (the illegitimate side of tax havens); bribes paid as a shortcut to get business; creative numbers fraud (inflation of sales figures or suppression of costs); conflicts of interest involving individuals inside or outside the business. The final chapter is a short story (based on a real case) which illustrates a fraud detective’s challenges, whether they are a reluctant whistleblower, someone who cannot turn a blind eye even if they would prefer to, or even the accused.
Accessible and practical, this book is for everyone who wants to stop fraud, including those working in accounting and finance, management, specialist functions, such as audit, compliance and security, and anyone else who aspires to be a fraud detective and stop fraud and corruption.
Table of Contents
How to use this book,
Note on the text,
Part I: Fraud and corruption made simple,
1. What is a fraud detective and how can I become one? ,
2. Demystifying fraud and corruption,
3. Turning a problem into an opportunity,
Part II: Recipes for the aspiring fraud detective,
4. Three basic examples of recipes to detect red flags ,
5. Thinking like a thief: how to out-think the fraudster and predict where your organisation is being defrauded,
6. Seven classic recipes to discover fraud and corruption,
7. How to follow the money and find fraud fast
Part III: Don’t panic: there is always a way to resolve things!
8. What to do when you think you may have found fraud,
9. Resolving fraud and corruption and restoring normality with minimal panic and maximum humanity,
10. Good news for management,
The Fraud Detectives: a true case in point
Nigel Iyer is a partner at the fraud advisory firm Hibis and has over 25 years' experience in detecting and preventing fraud. A computer scientist and a qualified chartered accountant, Nigel is also a recognised dramatist and has written a number of educational films and plays based on his experiences, many of which are used in teaching worldwide. He is the author of several books, including Fraud and Corruption: Prevention and Detection, The Tightrope and A Short Guide to Fraud Risk. Nigel lectures on fraud and corruption and is a fellow of CIMA and the University of Leicester, School of Management.
"It’s not just that everyone can be a fraud detective, everyone should be! Fraud dents trust in organisations and undermines civil society; robs companies and public bodies of much needed funds to invest and provide services; and at worst can lead to company closure, job losses and individual ruin. And the ill-gotten gains goes into the pockets of the dishonest and the criminally minded. That is why there is an urgent need to marshal all our forces and raise a new army – an army of fraud detectives to identify and prevent fraud. You don’t need to be Sherlock Holmes to detect fraud – sometimes it is hiding in plain sight, just waiting to be uncovered by someone with a sceptical eye - and this book will give you the tools to find fraud wherever it raises its ugly head. So go on, pick up that magnifying glass, throw on your metaphorical cape and deerstalker and join the hunt for fraud. You never know it might be quite a lot of fun - the game is afoot!" - Mike Haley, Chair of the Joint Fraud Taskforce and CEO of Cifas, the UK’s Fraud Prevention Service.
"This book provides some practical insights of how to find Fraud and corruption before it might find you. Not looking at a problem does not mean it does not exist - as a start , have a read of this book it is an excellent read." - Steven Swientozielskyj, CEO/President of Business Partnering Global Ltd
"How to Find Fraud and Corruption – this is a book of recipes … of recipes that can help organizations comprehend better how their books are being cooked; sunshine payments made, and colourful business deals signed and yet – see the bright side of it. As soon as you are empowered with knowledge and skills, any fraud stops being a vicious taboo word representing an uncomfortable and headache-causing issue, something that could never happen to your organization (and yet it did and will happen again). Empowering employees and organizations with skills and knowledge and injecting positive attitude that, yes, fraud discovery can be a gain and an opportunity to improve – this is one of the main contributions of the book, presented with playful grace and a touch of humour and with the author always there for his readers." - Anna Kon, Certified Internal Auditor and Fraud Examiner
"In creating a recipe book for aspiring fraud detectives Nigel has stuck two fingers up to the fraud technocrats by producing a book that is fun to read, easy to follow and crucially makes fraud relevant and meaningful. In the process he has highlighted the limitations of regulators and auditors to combat this pernicious activity, pressing the point that we all have the means and responsibility to tackle fraud in organisations, whether that is the companies we work for, governments we elect or the home in which we live. As with all good recipe collections, How to Find Fraud and Corruption provides the ingredients, measures and method to excel. The end result is a rich textured account of contemporary malpractice dusted with examples drawn from Nigel’s vast practical experience and scenarios which encourage you to reflect on your attitudes and behaviours. All of this, when complemented with Nigel’s wit and storytelling skills, ensures that uncovering the foul deeds behind cooking the books has never been so much fun." - Dr Matthew Higgins, University of Leicester School of Business.
"Nigel Iyer has written a unique book on fraud and corruption. His approach is different, informative, fresh and stimulating. Going beyond the dry practices of compliance he brings the topic alive and demonstrates clearly why a concern about fraud and corruption should be a central activity of all senior managers. Drawn from his own professional experiences garnered over many years working with a variety of organisations across the world Nigel draws out in a serious, engaging and entertaining way the main lessons to be learned. He writes clearly, provides sharply focused illustrations, and keeps technical jargon to a minimum whilst maintaining the professional foundations of his approach. The book will appeal to and should be read by a wide audience, including managers who take seriously concerns about fraud and corruption in their organisations. Professional fraud detectives and academics working in the area of fraud and corruption will gain much of value from reading it. Nigel Iyer’s book is likely to change the shape of professional practice in this area and must be read." - Peter M Jackson, Professor of Economics and Strategy, University of Leicester
"In the last 20 years I have reviewed hundreds of books on security management including counter-fraud in particular. How many are of immediate and direct use to security managers in their work, speak on urgent matters to the wider world, are on top of the latest thinking in business and yet are understandable and enjoyable to read, and well laid-out on the page? A few; a very few. How to find fraud and corruption by Nigel Iyer is one of those few. In this book as in his wider work for years Nigel has shown that countering fraud is not just for the handful of people with that in their job title, but for anyone with a responsible job, in the public, private or charity sector. Not least, I am glad to see that the great Mike Comer is among the authorities Nigel cites, for like Mike, Nigel is doing good deeds, and expressing his work in writing. A rare and welcome combination, in any line of work. Bravo!" - Mark Rowe, Editor, Professional Security magazine
"Fraud and corruption are widespread but a practical ‘how to find it’ guide that is at once so encouraging and readable is surely a first. Nigel demystifies the skills needed – we all have them – in a page-turner that both enlightens and powerfully supports the truth that it really is possible for everyone to make a positive difference upholding integrity, whether in organisations or in their personal lives." - Timon Molloy, Editor - Fraud Intelligence and Money Laundering Bulletin
"No-one wants to be fooled or made a fool of! Whether you are buyer, seller, manager, financial controller, auditor, administrator or anyone working inside an organisation, it’s good to be able to spot the tell-tale signs of fraud and corruption. This book differentiates itself from almost all the other literature I have read over the years on the subject. Through recipes and sharing of experiences, Nigel Iyer gently guides you to recognise fraud early and deal with it constructively and humanely. Let’s aspire to a day when companies, organisations and their auditors are rarely caught unawares, or only can rely on whistle blowers. This recipe book, a "fanfare for the common fraud detective", is well worth dipping into and is hard to put down." - Lasse Birkeland, Former Audit Partner BDO and Arthur Andersen. Group leader in the European Global Network for Corporate Accounting Managers and Financial Controllers, and advisor on public grants. In his long career as an auditor he has been constantly passionate about addressing the risk of fraud and corruption.
"An illuminating and inspirational read. Excellent structure and use of mini cases as examples, incorporating models to help the reader (e.g.2.1 and throughout) and useful easily understood examples. Enjoyed the text – a comprehensive discussion providing guidance around a rife and politically difficult issue which also provides essential aid with regard to understanding ethics and governance over compliance and ‘box ticking’. And clear advice, on the danger of over enthusiasm and the potential downside of whistleblowing, was also welcomed." - Eileen Roddy, Managing Partner: International Strategy Application and former Associate Dean Salford Business School and head of Partnerships at the Chartered Institute of Management Accountants (CIMA).
"I have recently read many useful books on Fraud and Corruption but one in this unique format. This book was refreshingly different from other similar titles and, moreover, after reading the book I was not only able to find fraud in an easy and quick way but also teach others to do the same." - Petri Kelo, Supply Chain Security Expert
"Iyer has the unusual ability to turn the practical experience of 30 years into not just an accessible toolkit but in fact essential reading for anyone working in a corporate environment. With a yellow and black cover it would be a perfect "Fraud for Dummies." Not so much a "whodunnit" as a "how to find it". Fraud practitioners like Iyer know that fraud is there to be found and after reading this book, you will too. After all, he’s stolen all my best ideas!" -Edwin Harland: Fraud Investigator and former Head of Forensics PwC Russia and CIS.
"Everyday heroes – read this book! This fight is winnable; it is within everyone’s grasp. You and I can be a big help. The recipes are a breath of fresh air in contrast to the big consultancy firms hammering on and on about non-conformance analysis into discrepancies in routines/guidelines/practices and regulatory requirements. In contrast to all these abstracts, Nigel Iyer presents us with tangible means of dealing with the issues of fraud and corruption. Inspiring us to become detectives. 'We can see the warning signs, or red flags, earlier, much earlier in fact – but only if we really want to.' " - Fridtjof Klareng Dale, Project leader Anti-Corruption International