Risk
Five fraud warning signs in a small business, and the controls that stop them
Most fraud in small organisations is simple, and so are the controls that prevent it. These are the signs investigators look for first.
Floray Professionals15 September 20261 min read
Fraud in small and growing organisations rarely looks like a heist. It looks like a supplier whose bank details changed by email, a cashier who never takes leave, or reconciliations that are always "nearly done".
1. One person controls a whole process
When the same person raises a payment, approves it and reconciles the bank, nobody else would notice a mistake, or a theft. Control: split those duties, even in a team of three.
2. Bank details change by email or phone
Fraudsters impersonate suppliers and ask for payment to a "new account". Control: confirm every change by calling a number you already hold, never one in the email.
3. Reconciliations are late
If the bank and the books are not matched every month, differences hide. Control: reconcile monthly, and have someone other than the preparer review it.
4. Someone never takes leave
Some frauds need daily attention to stay hidden. Control: make leave compulsory, and have someone else do the job while they are away.
5. Nobody has a safe way to raise a concern
Most frauds are found because someone speaks up. Control: give staff and suppliers a confidential way to report, and act on what you hear.
Check your organisation in five minutes
Our Fraud Risk Check scores twelve controls across cash, people and oversight and shows where investigators would look first. You can also play the supplier email game. If something already looks wrong, speak to our forensic team in confidence.
