The truth is, most business leaders don’t know the truth about fraud.
At Klein Hall, we work with businesses of every size – across just about every industry – to prevent and detect fraudulent activity. We know the challenges our clients face, and we also understand the scope and the reality of fraud’s grip on the business world.
Now, we’re debunking the biggest myths about fraud and revealing the surprising truths that every business leader should know.
Myth: Big businesses are hit hardest by fraud.
Fact: Small businesses lose nearly twice as much per scheme.
Big money is being lost to fraud. However, contrary to popular belief, it’s not just a “big-business problem.” In fact, small businesses are hit hardest.
In a 2018 ACFE study, big businesses lost an average of $104,000, while small businesses (with less than 100 employees) lost an average of $200,000. If you’re a small-business owner, it pays to protect your company.
Myth: Fraud is usually a negligible sum. It’s just a nuisance.
Fact: The average business loses nearly 5% of its revenue to fraud.
Businesses in every industry are losing serious money to fraud. And the more money a business loses, the less it’s likely to recover.
Myth: Most businesses have never experienced fraud and never will.
Fact: Nearly 95% of all businesses are victims of fraud.
Fraud? That could never happen to your business… right? The reality is, it probably has.
So, what can you do to stop it?
Myth: Fraud just happens. You can’t prevent it.
Fact: Businesses with anti-fraud controls experience less fraud and detect fraudulent activity in less time.
At Klein Hall, we work with clients to strengthen internal controls and prevent fraud from happening. When fraud does occur, our CFE’s (Certified Fraud Examiners) help clients identify it quickly and recover funds, when possible.