Many small business owners believe that since they’ve got an intimate, close-knit operation, they’re not susceptible to fraud when, in fact, the opposite is true. The Association of Certified Fraud Examiners reports that small businesses experience more instances of fraud than medium or large companies do. By designing and implementing appropriate internal controls at your business, you can detect fraud as it occurs and prevent employees from attempting it in the first place.
Who Commits Fraud
While you may think that fraudsters are hardened criminals who jump from job to job, the Journal of Accountancy reports that most individuals who commit occupational fraud are first-time offenders. Also, very few fraudsters take a job with the intention to defraud the business.