Fraud Isn’t Just For Big Business

We like thought provoking reports at Silverstar Analytics and here is one focused on the dynamics for fraud within small retailers. Key points

  • Small businesses, unfortunately, often lack the internal controls that larger organizations have.
  • Typically many small businesses are privately owned they are subject to much less regulation and different reporting standards than are larger or publicly owned corporations.
  • Small businesses are especially susceptible to theft as they often lack the resources necessary to establish formalized systems intended to deter unscrupulous behavior and prevent fraud.
  • Fraudulent conduct in small business is far more likely to be discovered by accident than by any determined action.
  • Small business owners face is the fact that employees are often required to fulfill various roles within the organization. This absence of separation of duties increases the opportunity for individuals to act unethically without anyone else knowing.
  • Small business owners and their employees may lack the knowledge and training necessary to fully understand their firm’s potential vulnerability to fraud and take the precautionary measures required to deter it. Many small business owners strive to maintain a family-like environment among their employees.


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