By Suzanne Atkinson, GBP&B Tax and Business Advisors
While we would all like to believe Confucius philosopher Mencius’ premise that human nature is good, the high number of employee fraud cases disputes his theory. Fraud is no longer rare, it is not just happening to the big companies and it is not masterminded by sophisticated criminals. Most cases involve first time offenders who have been presented with a golden opportunity to “earn” some extra cash.
Fraud is common, the 10/10/80 rule states:
- Ten percent of the population will never steal
- Ten percent of the population will always steal
- Eighty percent of the population will steal when presented with opportunity.
That’s ninety percent of the population that you need to protect yourself from!
When fraud happens, we aren’t talking about small amounts; the average loss to small businesses is over $185,000, enough to put you out of business.
Very few of these offenders are ever charged or imprisoned.
So, how can you as the business owner prevent fraud?
Don’t worry, fraud is easy and inexpensive to prevent!
Simple changes such as screening employees, reviewing your bank statements and having final say on all financial payments will significantly decrease your chances of being affected by fraud. It seems too easy, right? But letting your employees know you are there and watching will deter them from stealing.
Take back control of your finances and take away the golden opportunity for others to leave you devastated.