Small businesses devastated by embezzlement should use audit solutions

The periodic use of audit solutions is important in just about every industry. Sometimes, disappearing funds can be attributed to embezzlement, and if these cases are not quickly caught, the monetary losses can be devastating.

According to Fox Business, in the recent Association of Certified Fraud Examiners' (ACFE) 2012 Report to The Nations on Occupational Fraud and Abuse, the ACFE found that the median loss in workplace fraud incidents was $140,000. Costs reached $1 million or more in one-fifth of cases.

The study also concluded that small enterprises may be the most susceptible to internal fraud, as they often tend to be more lax when it comes to using audit solutions and enforcing policies.

"Because the average fraud in a business under 100 employees is larger than a company with over 1,000 employees, small businesses tend to have disproportionately large embezzlement losses," Dana Basney, managing director of due diligence and forensic services at CBIZ MHM​, told the source.

Bank Info Security noted that the ACFE's 2010 studies into internal fraud found that 85 percent of perpetrators had no previous criminal record related to embezzlement. For this reason, the organization recommended using audit solutions randomly: since many of these thieves are not career criminals, they are likely to be scared off by the potential of getting caught.

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