November 17, 2017

Fraud: It Could Happen to You

Anyone and any business can fall victim to fraud. A small business may see embezzlement or a large corporation may suffer from a cyber crime. According to an ACFE study, a single incident costs a company a median of $145,000 and small businesses suffer the same median fraud loss as organizations with 10,000+ employees. Additionally, 60% of small business fraud victims didn’t recover any of their losses. How would this affect your business?

Some of the greatest threats to an organization include inability to identify or address known fraud risks, lack of effective checks and balances, lack of communication between departments, unwillingness to identify or address fraud risks and lack of dedicated fraud prevention budget. However, preventative measures can be implemented to recognize and minimize costs. Consider:

Surveillance/Monitoring   |   IT Controls   |   Account Reconciliation   |   Internal Audit   |   Management Review

You may think, Fraud would never happen to my small business – we are family here.” Think again. ACFE concluded that small organizations had a significantly lower implementation rate of anti-fraud controls than large organizations. For example, if you are a hardworking small business owner, this may devastating to your company. Without these anti-fraud controls, you may be leaving yourself vulnerable.

All levels of Providence Mutual’s Business owner’s enhancements protect your business with the following set of essential crime coverage: employee dishonesty, forgery or alteration, money and securities, and money orders and counterfeit paper currency.  Contact your agent to determine the best enhancements, limits and additional optional protections such as computer and funds transfer coverage and the suite of coverage provided in our cyber insurance endorsement.

The description herein is a summary only, and does not include all terms, conditions and exclusions of the coverage described. Please refer to the actual policy for complete details of coverage and exclusions. Not all insurance coverages or products available in all states and issuance of coverage is subject to underwriting.