Financial fraud and crime hit most businesses. The most recent survey of business related fraud found that a whopping 87% of U.S. companies said they had been affected by fraud. Things seem to be getting worse; 93% of company executives said this issue was more challenging to address than just 2Ys ago. Especially with the ever increasing threat of electronic crimes. SMBs need to give some extra attention to avoid potential pitfalls, which could translate into significant financial loses.
A few key areas that I recommend starting is by having a clearly structured employee manual; check all employee references and perform a comprehensive background check. Also, secure and monitor areas of greatest potential risk. Review jobs to make sure any sensitive ones have duties that are handled separately or in dual control; limit those who get to see sensitive documents. It would also be good to have regular independent reviews of various areas of the organization; hire professionals to review sensitive areas (such as CPAs or outside consultants). Lastly, make sure best practices are always followed and that they are updated regularly.