How to Protect Your Business from Corporate Fraud June 7, 2016 By: Joel B. Charkatz Fraud in the workplace is a serious problem for all organizations; most common thefts involve cash. Most fraud is ongoing with the average length of the crime being 18 months from inception to discovery. Studies indicate fraud is committed most often by well‐educated professionals in senior positions and is affected by conditions within the organization. While a system of internal controls can certainly deter fraud from occurring it does not always prevent it entirely. In a report to the Nations on Occupational Fraud & Abuse, it was found that: There were 1,388 cases investigated in 100 countries with 43% of the cases found in the U.S. Certified Fraud Examiners estimate $3.5 Trillion global annual fraud losses. The median loss is $140,000. Small businesses average losses of $200,000. Large companies average losses of $127,000. An average of 5% of annual revenues are estimated to be lost to fraudulent activity. 20% of investigated fraud in the report caused at least $1 million losses. 22% of fraud is committed by accounting department personnel. 12% of fraud is committed by upper management/executives. Twice as many males vs. females commit fraud. 87% of fraudsters are never charged or convicted. To learn which industries are most commonly victimized, organizational vulnerabilities, ways to prevent fraud and more … download the full article below. How to Protect Your Business from Corporate Fraud JBC. Article by: Joel B. Charkatz, CPA, CVA, CFE Joel Charkatz, a Shareholder with KatzAbosch, has served the Maryland business community for more than 35 years. He is Chairperson of the firm’s Business Valuation/Litigation Support and Forensics Group and is a member of the Medical Practice Services Group. His top priority continues to be a consistent commitment to excellence. About KatzAbosch: Founded in 1969, KatzAbosch is one of the largest CPA and business consulting services in the Mid-Atlantic region. As an accounting firm, our mission is to provide the highest quality accounting, tax, financial and management consulting services to our regional clients. We understand the needs and challenges of our clients and we have made it our obligation to create, grow and protect asset value. KatzAbosch is consistently named a Best Accounting Firm to Work For in Accounting Today and has been named a Top 200 Accounting Firms in the Nation by Inside Public Accounting. Our firm is also ranked among the Top 15 Largest Accounting Firms in the Baltimore Area by the Baltimore Business Journal and a Top Workplace four times by The Baltimore Sun.