Not all employees commit fraud however, 55% of all fraudulent acts committed against Australian businesses are perpetrated by employees. Fraud is often difficult to detect and the impact it has on a business is often underestimated. Numerous case studies have been conducted on this issue and the statistics are alarming. Did you know that:

the average fraud amounts to $3 million;
60% of fraud cases take more than 3 years to detect;
61% of fraud cases result in no recovery;
less than 5% of businesses have insurance to protect against fraud; and
the annual cost of fraud in Australia is estimated at $8.5 billion.

In addition to insuring against losses from fraud, the following simple, yet practical steps can help mitigate exposure to internal fraud:

conduct rigorous background checks on all prospective employees;
implement and regularly review internal policies and procedures;
open avenues for the anonymous reporting of fraud; and
keep up to date with developing fraud trends.

Allegations of fraud perpetrated within or against a business should be reported to police as soon as they are identified. That said, the conventional assumption that police will take immediate action to protect a business’ interests is problematic; primarily because they are unable to investigate every report with the limited resources available to them.

If you believe your business has been the victim of theft or fraud, please contact us to discuss how we can assist you.