It’s easy to think that small businesses aren’t as likely to be victims of fraud. After all, employees know each other well and work closely together. But the opposite is actually true.
According to the Association of Certified Fraud Examiners’ 2012 Report to the Nations, “the smallest organizations in our study suffered the largest median losses.”
Small enterprises generally deploy fewer anti-fraud controls because owners think they don’t need or can’t afford them. But the losses from occupational fraud – an average of 5% of revenues annually – can far outweigh the costs of a fraud-mitigation program. The ACFE survey estimates median loss from occupational fraud at $147,000; more than half of these losses were unrecoverable. In contrast, it costs about $2,000 annually to provide online and phone hotlines for a 1,000-person organization.
The key is choosing the most cost-efficient and effective anti-fraud protections. We can help. We work with business owners and managers to establish a more ethical culture that includes employee trainingand to install anonymous reporting mechanisms like hotlines.
Still not convinced your small business needs a fraud protection initiative? Watch the short video “All Organizations Need It” (link in the left hand column) to hear from industry experts and corporate leaders on the return they get from these kinds of programs. Then contact us to request a quote:
Call: 1-888-ETHICS6 or 919-942-2469