Preventing Small Business Fraud

Business fraud is defined as the use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organizations resources or assets.

The Association of Certified Fraud Examiners estimates that a typical business will lose an average of 5% of revenues from employee theft.

A U.S. Chamber of Commerce survey reported that 1/3 of business bankruptcies are due to employee theft.

Here are some tips in reducing your exposure to business fraud:

  • Create a positive work environment
  • Implement Internal Controls
  • Educate your employees
  • Educate your employees
  • Implement an anonymous reporting system
  • Perform regular and irregular audits
  • Investigate every incident
  • Lead by example

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