Fraud Reviews

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
• Payments
• 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.