Are you at risk for fraud? (If you’re in business, the answer’s yes.)
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According to the most recent Report to the Nation from the Association of Certified Fraud Examiners, U.S. organizations lose 7% of their annual revenues to faud. Apply that to the gross domestic product, and that reprsents an estimated $994 billion in fraud losses!
Whatever business you’re in, you’re at risk for fraud.
Regardless of how trustworthy your employees may appear, no matter who you are fraud can happen. Whether you own your own small business or manage a department at a Fortune 500 company, fraud happens everywhere and is very costly. In a quarter of the cases in the study, the losses totaled over $1 million.
The industries most commonly defrauded (according to the study) were banking/finance, government and healthcare.
- The highest median loss — $800,000 — came in Telecommunications.
- Even educational, religious and charitable institutions get victimized.
- Small businesses suffer disproportionately large losses.
Read more about six tips to protect your company.
Read more about how to detect and prevent internal schemes at your bank.
Ivan Garces, CPA, is a Chief Risk Officer, Risk Advisory Services Practice Leader at Kaufman Rossin, one of the Top 100 CPA and advisory firms in the U.S.
