Fraud can hurt your business in a big way. Did you know that the #1 Fraud Detection Method is a tip? That’s right, employee tips detect fraud more often than all other means combined. Other methods of fraud detection including segregation of duties, independent checks and audits, and physical security of assets are still very important, but implementing a confidential way that employees can report fraud is key.
One of a small business owners biggest fears is the failure of their business. Did you know that one third of business failures are caused by fraud? Unfortunately, strong internal controls are not always implemented for small companies which can lead to losses that are extremely harmful to the business.
This fact is staggering. Nearly half of all private companies have experienced fraud. What are you doing to protect yourself from fraud and the reputational and financial damage that comes along with fraud? Do you have internal controls in place that protect you against fraud?
One and a half years – That is a long time for fraud to go unnoticed. Do you have the right preventative and detective internal controls in place to detect fraud? Earlier detection could save your business.
Fraud costs small business a median loss of $155,000, according to the ACFE. Can you afford to lose that? If not, you need internal controls in place to detect and avoid fraud altogether. Your controls don’t have to be fancy, start with some basics.
Almost half of the businesses that experience fraud never recover the losses incurred. That statistic is concerning due to the median size of the losses along with the percentage of organizations that experience fraud.