According to the Association of Certified Fraud Examiners(ACFE), the median loss in small business fraud cases is$154,000. Can your clients absorb a loss like that?
|If they're like most U.S. small businesses, probably not.
|According to figures from International Data Group, about 28% ofall small businesses generate less than $100,000 in annual revenue.A full 54% generate less than half a million per year.
|These are not businesses with money to burn.
|But, yet, they are, by taking on risky employees and exposingthemselves to potential fraud each and every day.
|“Small businesses face a unique set of challenges when it comesto detecting and preventing fraud,” said James D. Ratley, CFE,president and CEO of ACFE, in a video the organization produced forFraud Week in November. “Losing … money to employee theft is anexpense many small businesses just can't absorb. You rely on thetrust of your employees to make your company successful. But howmuch trust is too much?”
|ACFE recently put together a checklist for preventing smallbusiness fraud. Here are the suggestions they offered.
|Fighting fraud is everyones top-of-mind concern, the19th annual America's Claims Event, June 17-19 in Austin offersmultiple sessions and case studies to arm you with the lateststrategies for your business. Click here for more information. Use CodePC360AE & Save $100.
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#1 – Conduct background checks on allemployees.
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#2 – Implement a written code of ethics.
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#3 – Divide bookkeeping and check signingauthority.
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#4 – Deliver bank statements — unopened — to topmanagement.
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#5 – Implement a reporting mechanism orhotline.
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