Insider fraud turning into big business in East Lancashire (From Lancashire Telegraph)

The rhyme of history: in fact fraud may not be increasing but the detection of fraud may be better. John Kenneth Galbraith in his masterly book ‘The Great Crash 1929’, referred to this as the ‘bezzle’:

‘At any given time there exists an inventory of undisclosed embezzlement in – or more precisely not in – the country’s businesses and banks. This inventory – it should perhaps be called the bezzle – amounts at any moment to many millions of dollars. It also varies in size with the business cycle. In good times people are relaxed, trusting and money is plentiful. But even though money is plentiful, there are always many people who need more. Under these circumstances the rate of embezzlement grows, the rate of discovery falls off, and the bezzle increases rapidly. In depression all this is reversed. Money is watched with a narrow, suspicious eye. The man who handles it is assumed to be dishonest until he proves himself otherwise. Audits are penetrating and meticulous. Commercial mortality iis enormously improved. The bezzle shrinks.’ (The Great Crash 1929 by John Kenneth Galbraith, First published 1954, p.152-53).

Galbraith's argument is interesting because it runs counter-intuitive to the belief that the level of fraud increases in bad times.

Kevin, you come out with some good stuff but this is like a bright light shining in the gloom and misery usually benighting this place. I participate in a local pub quiz and my team (there are three of us) are unbeaten in over a year and always want some better opposition. I hope you turn up as we'd like some worthy oppos.