Author: Michael J Cromer
ISBN No: 0 566 07810 4
Review date: 13/12/2025
No of pages: 676
Publisher: Gower Publishing, Gower House, Croft Road, Aldershot, GU11 HER
Year of publication: 11/09/2012
Brief:
A review of Corporate Fraud (third edition, 2000) edited by Michael J Cromer.
Corporate Fraud (third edition, 2000)<br><br>
Editor: Michael J Cromer for Network Security Management. <br><br>
The author Michael J Cromer is well known after his excellent previous first and second editions. The third edition has been carefully updated and is a definite requirement for all security managers and fraud investigators and others involved in the prevention and detecting fraud. Cromer is an internationally recognised authority on corporate fraud with more than 30 years’ experience as an investigator and adviser at the highest level.
This publications in four parts containing informative 42 figures and 165 tables, followed by most useful appendices and index. The author reveals his experiences together with an exceptional sense of humour rarely found in books on criminal issues. In part one, the author discusses ‘attitudes and misconceptions’ and argues that a standard expected of companies has increased dramatically and that regulations in many sectors are complex, if not impossible to understand. Quoting a survey the author showed that 51 per cent of frauds are discovered by accident, no surprise, and 20 per cent are reported by disgruntled mistresses and lovers! Rightly he argues if small frauds are allowed to escape unpunished they will soon grow. Cromer produces a number of interesting, useful tables and figures: profile of a fraudster, reasons for committing fraud; how fraud is concealed and types of concealment. Cromer argues that concealment is an important element in many frauds and always leaves clues and that it is simply a question of knowing where to look and what to look for. The author provides 50 pages on ‘high-risk areas’ covering blue and white-collar frauds and how organised crime gains from fraud and its tentacles spread into the centre of commercial life often enforced by violence. Cromer who illustrates how the range of fraud possibilities is very wide discusses computer fraud that is of concern to many today. Part two has 40 pages dealing with the purpose and techniques of detection referred to as critical point auditing. Comer reveals his 25 extensive experiences in uncovering fraud by producing useful illustrations in the form of tables such as for ‘high-value and high-risk contracts’ and ‘entity checks’ (matching names post codes, etc). Part three refers to the background to investigations of fraud and how such investigations can be ‘cantankerous and generate a great deal of heat’. Important advice is given such as ‘never rush into an investigation, unless there are exceptional circumstances; take time to plan ahead so that criminal are ambushed in the first step in an act of unexplained dishonesty. (The joy of success.) There is continued good advice that I totally agree with such as: ‘Suspicions of fraud should always be thoroughly investigated, in the interest of both victims and those under suspicion.’ Whether to prosecute or not is clearly and honestly discussed and will assist many readers in what appropriate action to take. In fact I have never experienced such clearly set out advice on this subject of whether or not to prosecute. Cromer argues not prosecuting is socially and morally indefensible. (I fully support his views. Please before picking up the telephone to speak to me, read this book, I am sure you will be convinced Cromer is right.) Police prosecution and action through the civil courts is discussed logically. Types of evidence, pressures and inducements, tape recordings and notes are expertly placed before the reader. Computer evidence and its admissibility and proven reliability of the computerised system are examined. There follows 50 pages in the skills of interviewing ‘ a subject usually not dealt with in depth in such a practical manner. Part four examines the controlling of corporate fraud giving many readers the information on how to possibly save one to two per cent of their company’s turnover by improving controls. Finally there is a most useful appendices and index of over 100 pages.
Readership: security managers, fraud investigators, financial directors, chief accountants, senior local government administrators. The first addition of ‘Corporate Fraud’ was very good; this latest third edition is excellent incorporating electronic commerce, derivatives, computerization and other recent developments. Mike Cromer the author has a gift of explaining ‘Corporate Fraud’ in a most interesting, readable way that reveals a practical mind of vast fraud investigative experience. ‘Corporate Fraud’ is a book of 676 pages that one cannot put down, a truly amazing read.
