If your business lost $150,000 what impact would it have on you, your family and your livelihood?
How could it happen to you?
All that needs to be in place for a fraud to occur is an opportunity.
Small businesses are disproportionately affected because they do not have in place adequate preventative and detective fraud controls. Trust is a vital element in a small business employee relationship, but it is not a protection. Fraud investigators use a theory that states: 10% of people will actively seek out opportunities for fraud.
PROTECT YOUR BUSINESS FROM THESE PEOPLE.
80% of people will commit fraud under the right circumstances.
DO YOU NEED A REVIEW?
Your business needs a review if you do not have sole access to:
- Cash handling
- Accounting functions
- Inventory management
What is the review?
- A series of interviews between a skilled consultant and relevant staff to identify risk areas;
- A consultation with business owners, management and your business advisor to develop practical solutions to identify fraud risks; and
- Assistance to project manage the business to implement solutions.
Why is small business at a higher risk of fraud?
Statistics tell a worrying story about the prevalence of fraud and the impact it can have on small business:
- 50% of Australian businesses experience economic crime compared to the global rate of 37%;
- 30% of all fraud cases occur in businesses with less than 100 employees;
- On average small businesses suffer the same median losses as large businesses at $150,000;
- 60% of small business fraud victims do not recover any of their losses;
- 56% of frauds are perpetrated by employees and management;
- Over 40% of frauds were undertaken over a 5-year period; and
- Australian businesses have a 54% chance of experiencing asset misappropriation in the next 24 months.
Reviewing fraud controls does not mean you do not trust your employees, it means you want to be in a position to never question that trust.