An AICPA survey found that 82% of all small businesses suffered employee theft— to the tune of 125,000 dollars per crime. Astonishingly, most of the thieves were not prosecuted! Another study revealed that a typical organization loses 5% of its revenues to fraud each year!!!!
So what can a business owner do? The Association of Certified Fraud Examiners has created an anti-fraud deterrence and detection program that you can use in your place of business to prevent fraud.
Its 5 key action items are:
- Set up a Fraud tip hotline for anonymous reporting — far and away this is how the vast majority of theft is discovered.
- Utilize Surprise fraud audits.
- Institute separation of duties.
- Properly screen and vet new employees.
- Setup employee support programs for the inevitable human conditions that can lead to theft.
Employee Theft — it can happen to any company — even yours. There’s a lot more to learn — if you’d like to talk further, give me a call.