Although we don’t like to admit it, succeeding as a small to mid-sized business (SMBs) takes more than a great idea and strong work ethic. Vigilance and the ability to anticipate the unexpected — whether it’s unforeseen costs, dips in the economy, or other more ominous issues — is all part of the job description for every small business owner. Continue reading
**Originally published July 7, 2015, updated July 22, 2019**
Fraudsters are always in the market for a lucrative new target. So, what’s the most information-rich, security-poor victim they can exploit? A small business, of course.
According to the Association of Certified Fraud Examiners (ACFE), an organization on average loses a whopping 5% of their revenue to fraud each year — that’s potentially a global total loss of $4 Trillion dollars. And small businesses are impacted disproportionately harder by fraud, with a median loss of $200,000 for businesses with less than 100 employees. That’s almost twice as much as the median loss for companies with more than 100 employees ($104,000.)
Thankfully, there are a few tricks small business owners can use to combat potential fraud. And the best place to start is by looking at the main entry points of exploitation: occupational fraud, cyberattacks, and identity theft.
How could the comptroller of Dixon, a small northern Illinois town with an annual budget of $6 to $8 million, embezzle $53 million over two decades?
Despite annual audits by an independent accounting firm and state regulators, Rita Crundwell managed to slip through the cracks and defraud her hometown to fund her own lavish lifestyle and pastime. Continue reading
Each year, organizations around the world typically lose 5 percent of revenues to fraud. The cost is staggering: if this percentage were applied to the 2013 estimated Gross World Product, it would translate to a projected global fraud loss of nearly $3.7 trillion, according to the Association of Certified Fraud Examiners (ACFE).
Fortunately, there are cost-effective strategies that businesses large and small can take to detect fraud, reduce vulnerability, and stem losses. Here’s what you need to know: