Small Business Crime
Employee crimes can take many forms – overbilling customers, fake vendor payments, skimming cash, false expense reporting, check tampering and more. Small businesses are not immune to these risks. In fact, according to the Association of Certified Fraud Examiners (ACFE), small businesses are twice as likely to see billing and payroll fraud and four times as likely to suffer from check and payment tampering.1
The typical fraud case lasts 14 months before detection. In small businesses, this window can be even longer. The longer fraud goes undetected, the greater the financial loss. According to ACFE’s most recent report, small businesses had the highest median loss of $150,000 compared to $140,000 in large organizations.2
Small companies can be susceptible to crime because they often don’t have the safeguards in place to prevent and detect criminal activity. Difficult financial times can make these problems worse. Research conducted during the recession of the late 2000s showed that crimes, like credit card fraud and employee embezzlement, rose. As small businesses recover from the impacts of the pandemic, these trends could re-emerge.
Great American’s Fidelity / Crime Division can help small businesses be protected from employee theft. Don’t overlook this crucial coverage!
Learn more about our Small Business Crime Insurance
Learn More- 1 Association of Certified Fraud Examiners (ACFE), 2020 Global Study on Occupational Fraud and Abuse
- 2 Ibid. Small businesses in this study are defined as those with fewer than 100 employees. Large organizations have more than 10,000 employees.
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