Downturns are corporate fraudsters’ worst enemy

Booms help fraudsters paper over cracks in their accounts, from fictitious investment returns to exaggerated sales. Slowdowns rip the covering off.

As Warren Buffett once put it: “You only find out who is swimming naked when the tide goes out.” This time, thanks to the Covid-19 pandemic, the water has whooshed away at record speed.

Read the full Economist article HERE.