As technology advances, entrepreneurs and customers of small businesses are continuously faced with the possibilities of internal fraud. Internal fraud is entirely common but it can be altogether prevented.
Most internal fraud incidents are engineered by employees, and such cases take up over half of all reported incidents. As for actual losses, about $652 billion was lost at the hands of internal fraud. Almost 80% of all companies that suffered from such cases were small companies. Small companies should pay special attention to cases like asset misappropriation, corruption and doctoring financial statements. Here are some measures small companies can take to prevent internal fraud: