On the face of it – in Japan

In Japan, fraud can be simply so embarrassing, it is swept under the carpet – and that realisation can leave companies prey to the dishonest, especially insiders. There are some signs, though, that attitudes are changing. Julian Ryall reports from Tokyo.

Bill Stewart, a partner in fraud investigation and dispute services at Ernst & Young ShinNihon LLC in Tokyo tells a cautionary tale. A retired former accounting executive’s visits to his old company each month never raised eyebrows: like many retirees in a nation where one’s company is seen as an extension of their family, current employees perceived his visits as social and for checking everything had been running smoothly since his departure.