The 10 Most Frequently Asked Questions:
1. What is internal fraud, and how common is it in small to medium businesses?
Answer:
Internal fraud refers to dishonest or illegal actions by employees, managers, or executives that result in financial or reputational loss to the business.
This can include theft of cash or inventory, payroll fraud, expense reimbursement scams, or manipulation of financial records.
According to the Association of Certified Fraud Examiners (ACFE), small and medium businesses are disproportionately affected—about 42% of fraud cases occur in organizations with fewer than 100 employees.
Smaller teams often lack segregation of duties and formal controls, making them more vulnerable.
2. How can I tell if my business is already a victim of internal fraud?
Answer:
Signs may include unexplained discrepancies in financial records, missing inventory, unusually high expenses, resistance to oversight, or employees living beyond their means.
Other red flags are employees who never take vacation (to hide fraudulent activity) or who refuse to share job responsibilities.
While these signs don’t confirm fraud, they warrant further investigation. We can conduct discreet audits or forensic reviews to assess your risk or uncover potential issues.
3. What services do you offer to prevent internal fraud?
Answer:
We provide a comprehensive suite of services, including:
Risk assessments to identify vulnerabilities
Design and implementation of internal controls (e.g., segregation of duties, approval workflows)
Employee training on fraud awareness and reporting
Policy development (e.g., anti-fraud policies, whistleblower programs)
Forensic accounting and investigations when fraud is suspected
Ongoing monitoring, review and control testing
Our goal is to create a culture of integrity and accountability while putting practical safeguards in place.
4. Isn’t having an accountant or bookkeeper enough to prevent fraud?
Answer:
Not necessarily. While accountants and bookkeepers are essential for accurate financial reporting, they aren’t always focused on fraud detection or prevention.
In fact, they may be in a position to commit fraud if proper checks and balances aren’t in place.
Our services go beyond bookkeeping; we focus on designing systems that reduce opportunity for fraud, such as dual approvals, surprise audits, and access controls, even within the finance team.
5. How much does your fraud prevention service cost, and is it worth the investment?
Answer:
Costs vary based on business size, complexity, and scope of services, but typically range from a few thousand dollars for a basic risk assessment to more for ongoing monitoring or investigations.
Consider this: the average fraud case costs businesses $125,000, and small businesses often take longer to detect fraud (median: 14 months).
Investing in prevention typically saves far more than it costs. Think of it as insurance for your financial health, reputation and peace of mind.
6. Can you help us investigate a suspected fraud case discreetly?
Answer:
Yes. We conduct confidential, professional investigations using forensic accounting techniques, data analysis, and interviews—while respecting employee rights and legal compliance.
Our approach is fact-based and minimally disruptive.
We work closely with you to gather evidence, assess the impact, and recommend next steps, whether that’s internal disciplinary action, legal proceedings, or process improvements to prevent recurrence.
7. What role do employees play in fraud prevention?
Answer:
Employees are both a risk and a critical line of defense. Most fraud is detected through tips—often from other employees.
We help you establish a safe, anonymous reporting system (like a whistleblower hotline) and foster a culture where ethical behavior is encouraged.
Training staff to recognize red flags and report concerns without fear of retaliation significantly reduces fraud risk.
8. How do you handle sensitive information and ensure confidentiality?
Answer:
We treat all client information with the highest level of confidentiality and comply with data protection regulations.
All team members are bound by strict confidentiality agreements.
During investigations or audits, access to sensitive data is limited to essential personnel only, and findings are shared only with authorized stakeholders.
9. Can technology help prevent internal fraud?
Answer:
Absolutely. Modern tools like automated accounting systems, AI-driven anomaly detection, digital audit trails, and access controls can significantly reduce fraud risk.
For example, software can flag duplicate payments, unusual login times, or unauthorized access attempts.
We can help you evaluate and implement the right tech solutions tailored to your business size and operations.
10. How long does it take to set up effective fraud controls in my business?
Answer:
It depends on your current systems, but we can typically implement foundational controls within 4 to 8 weeks. This includes a risk assessment, policy and procedure updates.
More complex organizations may require phased rollouts.
The key is starting with high-risk areas (like cash handling or procurement) and building a sustainable control environment over time.
Many clients see improved security and peace of mind within the first month.