Eight Tips to Prevent Employee Theft and Fraud

One of the most serious threats to the success of a small business is employee theft. Misplaced trust, lax hiring and supervision, and a failure to implement basic financial controls can lead to an environment that is ripe for internal theft and fraud. The Association of Certified Fraud Examiners estimates that the typical business will lose an average of 6 percent of revenues from employee theft. The ACFE Report to the Nation on Occupational Fraud and Abuse indicates that small businesses suffer disproportionate losses because of the limited resources they have to devote to detecting fraud. Small business owners can help protect their businesses from employee theft and fraud with the following eight tips.