SmallBusinessNewz

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.