The last thing a small business needs now is fraud.
Moderately-sized companies are already struggling enough in the fragile economy. Getting ripped off by a dishonest employee can be a crippling blow.
Fraud of American companies isn’t pocket change: a 2008 survey by the Association of Certified Fraud Examiners estimated that U.S. organizations lose 7% of their annual revenues to fraud — nearly $100 billion in 2008. The damage is the worst among small businesses, where the median loss suffered by organizations with fewer than 100 employees was $200,000.
True, the time and funds it takes to prevent fraud can seem intimidating. But taking basic precautions and making a small investment early on can pay big dividends.
Even though time and resources are scarce when you’re a small business owner, you should make fighting fraud a priority because, in a tough economy, you literally cannot afford to fall prey to scammers.
Preventing and deterring fraud is much more effective than trying to recover losses after the fact. The economy is showing signs of recovery, but damaging fraud schemes can compound the financial woes of a struggling organization.