Organizations worldwide lose an estimated five percent of their annual revenue to workplace fraud, according to a study conducted by the Association of Certified Fraud Examiners. That may not mean much to a business bringing in millions, but those kind of losses can wipe out a small business.
In the 2014 Global Fraud Study, the smallest businesses took a median hit of $154,000, even higher than the median $145,000 for all businesses. Small businesses are also more likely to be affected by payroll fraud than larger businesses. The study found that 16.5% of fraud cases concerned small business payroll, while just 8.2% of larger businesses were victims of payroll fraud.