David Kirkpatrick

July 24, 2009

Small business at higher risk for fraud

Filed under: Business — Tags: , , , — David Kirkpatrick @ 12:36 pm

An interesting take on small business and corporate fraud.

From the link:

Here’s the really scary part for entrepreneurs: Small businesses are more vulnerable to sneaky shenanigans than large ones.

Small companies often have one person doing multiple jobs and don’t have the same internal controls required by large, publicly held companies, says Scott Grossfeld, chief executive of the Association of Certified Fraud Examiners (ACFE) in Austin, Texas.

An ACFE study covering 959 cases of “occupational fraud” (meaning the kind that transpires at work) between January 2006 and February 2008 suggests that U.S. businesses lose, on average, 7% of their annual revenue to fraud. (How many companies would kill for an extra seven percentage points of profit, in this or any economy?) Businesses with fewer than 100 employees absorbed a median loss of $200,000. Most small-business fraud cases involved wrongful billing and check-tampering.

Leave a Comment »

No comments yet.

RSS feed for comments on this post. TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: