Fraud and Theft - Small Means Vulnerable

In June of last year I talked about fraud, and the fact that hard times increase the temptation for customers, suppliers or staff to steal.

I also mentioned in that post that whilst many small businesses feel that they are too small, and know their staff, their suppliers and their customers too well to be potential victims, it is actually small business rather than large ones that attract predators simply because large companies tend to be hypersensitive to their vulnerability to to fraud and theft and their vetting and other systems are consequently tighter and more stringent.

According to figures collected by accountancy firm BDO, fraud cost business and the public sector £2 billion plus last year - and BDO's Group Head of Fraud expects reported fraud to treble over the next two years as managers uncover more and more theft in the process of clamping down on costs and cashflow.

As usual, the vast majority of fraud reported in 2009 was carried out by white collar workers between the ages of 20 and 39 in order to fund a lavish lifestyle, or was linked to alcohol, gambling or drug problems. Only five percent was motivated by debt, and only one percent by real 'need' for extra cash.

Small and medium-sized companies are very vulnerable to fraud. Don't let it happen to you.

I included some advice as to how to identify potentially vulnerable areas - and potential fraudsters - in my post entitled 'Fraudsters are Equal Opportunity Opportunists'. You can find it by going to the archives for June 2009, or typing the word 'fraud' into the 'Search this Blog' box on the right.

Do it! A leaky boat is the last thing you need when it's so difficult to stay afloat to start with.