It Could Never Happen Here…Right?
Remember Harry Potter’s Invisibility Cloak? He’d wrap it around himself and voila – he might be standing right in front of you and you’d never even see him! Cool, huh?
Harry’s cloak isn’t foolproof, though. Say Harry sneezed while under the cloak. You’d still hear him. And if he walked through mud he’d still leave footprints. You get the idea. He’d be invisible, but you might still be able to figure out that he’s there.
Small business fraud just happens to be a HUGE business – all because the fraudsters have wrapped themselves in Harry’s Invisibility Cloak! They steal the business’ assets (mostly cash) and no one even knows they’re doing it! Cool, huh?
No, not really. “Scary, huh?” is more like it. All that hard-earned money going “adios” while the owners swear up and down that it can’t happen to them! Nope. No way! My procedures are rock-solid. My back office staff has been with me for 25 years. I trust ‘em like family. Never had a problem. Right?
Hopefully. But maybe not. Those “rock-solid” procedures? In small businesses they have more holes than a moth-eaten mink stole. And you can count the number of frauds that WEREN’T committed by trusted employees on one hand – and still have fingers left over!
This blog is all about small business frauds. It’s about an Invisibility Cloak. But it’s also about spotting the footprints and hearing the sneezes. Most importantly, this blog discusses some simple and practical things that small business owners can do to lower their chances of someone walking off with their money.
But before diving in, let me emphasize a couple of points.
First, this blog deals with small-business frauds. Discussions of the Madoffs, the Enrons, the HealthSouths and all other big business frauds are left to the news reports and to other blogs. The complexity of some of those fraud schemes can tie forensic auditors in knots for years. Small business schemes are more common and tend to be less complex – though detecting them can still be nearly impossible!
Second, I underlined the phrase “simple and practical” for a good reason. Small businesses often don’t have the time, the resources or the inclination to erect complex fraud barriers. It would drive ‘em nuts. But a few easy-to-install fences can go a long way to keeping the fox out of the hen house or finding out if he’s there. So let’s begin…
Read articles on actual small-business frauds and what small-business owners can do to prevent them here: TraceTech Solutions’ Blog
Learn more about how TraceTech Solutions’ services prevent, monitor and detect small business fraud here: TraceTech Solutions website