Big news from Duane Reade, as the drug store chain is facing fraud charges that allegedly account for a $17.5 million overstatement of pre-tax income. Interesting, but more important are the fraud cases that we are not seeing publicized.

In fact, the Duane Reade article in Accounting Today is just the kind of high profile case that prevents executives of small to mid-sized private companies from recognizing that fraud is a much greater danger to them than to large publics.

The truth is that the large majority of fraud is committed against these smaller companies, and is extremely damaging. In fact, companies with less than 100 employees are most prone and often see losses eclipsing $200,000 – a crippling hit for a small company.

We always encourage owners and financial executives to understand where the opportunity lies for fraudsters and how to mitigate the risks. This presentation, which is a condensed version of a recent seminar, tells a compelling story.  Feel free to let us know if you think fraud is taken seriously enough at your company.

This entry was posted on Thursday, October 16th, 2008 at 8:00 am and is filed under Fraud Prevention. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.