The last several years have not gone as planned. Many businesses anticipated that by now, things would be back to “normal”; however this has not been the case for many businesses. Hybrid working environments and operational business changes, among other things, have led to an increase of fraudulent activity specifically targeting businesses. See some internal fraud statistics below:
- Fraud causes companies to lose an estimated 5% of revenue every year.
- One-third of cases occur because companies lack internal controls.
- The average fraud case costs a company $1,509,000.
- A typical fraud case lasts 14 months before it’s detected.
- Billing and payroll fraud occurs at twice the rate in small businesses compared to large companies.
- Almost half of perpetrators try to conceal the crime by creating fraudulent documents.
- The most used anti-fraud controls at organizations include: an external audit, code of conduct, internal audit department, and management certification of statements.
It’s now more important than ever to protect your organization against fraud. That’s why we created our Internal Control and Fraud Checklist to help you better protect your business.