As of my last update in January 2022, there are various statistics and reports available that shed light on the prevalence of fraud affecting small businesses. However, it’s important to note that specific statistics may vary depending on the source, methodology, and timeframe of the study. Here are some key findings from reputable sources:
- Association of Certified Fraud Examiners (ACFE):
- The ACFE’s “Report to the Nations” provides insights into global fraud trends across different industries and sectors. While the report does not focus exclusively on small businesses, it highlights that smaller organizations generally experience higher median losses due to fraud compared to larger organizations.
- According to the 2020 report, organizations with fewer than 100 employees experienced a median loss of $150,000 per fraud scheme, compared to $110,000 for organizations with 100 or more employees.
- Small Business Administration (SBA):
- The SBA recognizes that small businesses are particularly vulnerable to fraud due to limited resources and internal controls. While the SBA doesn’t provide specific statistics, it offers guidance and resources to help small businesses identify and prevent fraud.
- Federal Trade Commission (FTC):
- The FTC tracks consumer complaints, including reports of fraud targeting small businesses. Common types of fraud reported by small businesses include billing scams, tech support scams, and phishing attacks.
- However, these statistics primarily reflect reported incidents, and the actual prevalence of fraud may be higher due to underreporting.
- Insurance Companies and Financial Institutions:
- Insurance companies and financial institutions may provide insights into fraud trends based on claims data and fraud detection efforts. They often collaborate with businesses to mitigate fraud risks and offer insurance coverage against financial losses resulting from fraud.
- Industry-Specific Reports:
- Various industry associations and organizations may publish reports or surveys on fraud trends specific to certain sectors, such as retail, healthcare, or hospitality. These reports often highlight common fraud schemes and best practices for prevention.
While these sources offer valuable insights into the prevalence and impact of fraud on small businesses, it’s essential to interpret statistics within the broader context of each organization’s unique risk profile and industry dynamics. Small businesses can leverage available resources, such as fraud prevention guides, training programs, and risk assessment tools, to strengthen their defenses against fraud and financial misconduct.