Large companies are often blessed with large safety nets. Small companies tend to operate on the opposite side of the scale. Be extra careful, then, as a report from the Association of Certified Fraud Examiners indicates that small businesses are being hit hard by fraud.
While the manufacturing, banking, and insurance industries were worst off, the ACFE stated, "The median loss suffered by organizations with fewer than 100 employees was $200,000." And here's the really scary news: "This was higher than the median loss in any other category, including the largest organizations."
So what should you guard against? "Check tampering and fraudulent billing were the most common small business fraud schemes," according to the ACFE. A review of your internal controls might prevent many problems, and communication is important, too, as tips led to the detection of fraud in a lot of cases.
Fraud is likely to become more of a problem thanks to the floundering economy; people could feel it's necessary to either keep up a certain standard of living or just stash more money away as a precaution.
Stay on your toes using surprise audits and a general awareness of what's going on, though, and hopefully this issue won't affect your company.
Save Your Customers Money, Get Them to Spend More with YouFraud Running Rampant Among Small BusinessesHow Much Money are you Throwing Away on Wasted Time?Flexibility for Employees Could Mean Money SavedThe Top Five Content Management SystemsSave Money By Supporting TelecommutersIs That Really How You Want to Save Money?Saving Money is a Huge ConcernA Package Deal: Make and Save Money "Your Mama is Making Me Money..." | |||
| Do you have a business site? Submit your business related site FREE! | |||
| |||
Contact Us
Advertise
Newsletter
Comments
Fraud
I couldn't agree more, Doug. My safety and security web site is my small business. I started it so I could have the flexibility to take care of my aging parents. I have some great products but unfortuntately, they are typically the target of fraud. I received a fraudulent order for over $1,400. I didn't find out that the credit card information he used was stolen until after I shipped the merchandise. Consequently, I had to return the money and had to pay for the merchandise that was shipped. This was a very hard hit for my small business but a lesson well learned. I call every customer now to make sure they are the actual card holder before I ship any merchandise.
Post new comment