Insufficient Background Checks and Controls Yield Fraud for Many SMBs

Many small business owners unknowingly expose their company to a higher risk of employee fraud and theft than large organizations by ignoring common security measures. A recent article by the Wall Street Journal reveals the significant risk that small businesses face when failing to implement security measures such as thorough background checks, auditing, and workplace security cameras, among others.

They often place too much trust in their employees. The Association of Certified Fraud Examiners (ACFE) reveals that it is often the person who is the “most trusted” that is perpetrating the fraud. The ACFE estimates that organizations with fewer than 100 employees experience a median loss of $200,000 per fraud incident–$57,000 more than the median of large organizations.

Reducing the risk of employee fraud and theft should start with a thorough employee background check including criminal searches, reference checks, and other common searches.

Learn other ways to protect your organization from employee theft and fraud, and what warning signs to look for, by reading the full Wall Street Journal article: Business Owners Get Burned by Sticky Fingers

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