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High-Tech Fraud Prevention

Please note: This item is from our archives and was published in 2008. It is provided for historical reference. The content may be out of date and links may no longer function.

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Even small businesses that have been victims of employee fraud are failing to put proper systems in place to prevent future occurrences, according to a Sage Software survey conducted by M/A/R/C Research. The findings suggest proper use of accounting software may be a valuable weapon in a company’s fraud-prevention arsenal.

The survey found that 21% of small businesses did not have a system in place to prevent employee fraud and another 13% didn’t know if they did or not. Furthermore, about a quarter of companies that have suffered fraud losses in the past have not established preventive measures. Twentyeight percent of small businesses that responded to the survey said they had been victimized at some time by employee fraud.

Of the respondents that had internal control systems in place to prevent fraud, 47% were using their accounting software as a fraud-prevention tool.

Source: Sage Software, www.sagesoftware.com/newsroom/news/index.cfm.