Small Businesses Most Vulnerable to Payroll Fraud

Small businesses are often the most vulnerable and easiest targets for occupational fraud and abuse-and particularly payroll fraud, according to Fiducial, an international provider of professional business outsourcing. "Many small businesses think they are less likely to experience Insider theft,

like payroll fraud, simply because they are small, often friendly little businesses," said Eric Myers, manager of Piducial's payroll processing center and a Certified Payroll Professional (CPP). "But unless the owner handles all aspects of computing and paying the payroll, there is room for fraud in every small business."

Flducial's first-hand experience with small businesses is backed up by national statistics from the Association of Certified Fraud Examiners. According to ACFE's "Report to the Nation on Occupational Fraud andAbusc":

* More than 39 percent of the cases of fraud occurred in businesses with fewer than 99 employees;

* Payroll fraud schemes accounted for nearly 10 percent of the $600 billion lost to fraud last year;