Three External Scams Targeting Your Small Business

Small Business Owner Concerned About Scam

Businesses Beware  

Scammers are getting more sophisticated and are constantly evolving to avoid detection. And, within small businesses themselves, there are internal issues that may lead to a higher risk of further external scams. For example, small and mid-sized businesses (SMBs), who often lack a proper system of checks and balances, are especially appealing to fraudsters. In a report released in April 2018 by the Association of Certified Fraud Examiners, scams within businesses with fewer than 100 employees, led to the following:

  • Median loses of $850,000 – this was due to fraud committed by an owner or executive within the small business, further emphasizing the need for checks and balances.
  • Check and payment tampering was nearly three times more likely at a small business than a larger one (22% to 8%). Other frauds much more common at small businesses included skimming (20% vs. 8%) and payroll (13% to 5%).

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