The losses from these cases totaled $3 billion. Businesses with 100 employees or less endure greater financial loss (28 percent higher) than businesses with more than 100 employees. More than 40 percent of fraud cases were detected by tips that were reported on fraud hotlines.
“It’s so often I hear, ‘I trusted that person, I’ve worked with that person for 20 years.’ Well, the answer to that is, although trust is important and you need to trust your employees, trust is not an internal control,” explains Annie Yoder, CPA, CFE, CFF, a principal with Rea & Associates. “Trust will not prevent fraud from occurring in your business.”
Check out this informative video to learn more.