By Chrissie A. Powers, CPA/CFF, CFE, CVA
Results from the 2014 Report to the Nations are in and business are still losing 5% of their annual revenues to fraud. The higher the fraudster's level of authority, the greater the fraud loss suffered by the employer. The Association of Certified Fraud Examiners reported that the median loss caused by fraud is $145,000 and the fraudulent scheme runs 18 months before detected.
We continue to see businesses with the attitude that "It can't happen at my company." Your clients need to understand that fraud doesn't discriminate. Companies of all sizes from private to public to not-for-profit are susceptible to being victims. It can happen in Columbus or Millersburg, Ohio. It could happen to your client!
If your client has less than one hundred employees, they are victimized more frequently than larger organizations. Small businesses suffered a median fraud loss of $154,000 which is slightly above the average for all organizations. A loss of this size for a small business could equate to financial ruin.
Most fraudsters are first time offenders and 82% of the fraudsters have never been punished or terminated by an employer prior to a fraud-related incident. The typical fraudster is a male employee between the ages of 31 to 45 who have been with the company between one to five years.
If you suspect fraud or would like to discuss your fraud concerns, don't hesitate to contact us at 614-745-5192.