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    What’s more, Ratley says most crimes of this kind are only discovered by accident, such as when a check bounces, a vendor lodges a complaint or the offender gets laid off or goes on vacation.

    If a business as established and well off as UBS can suffer at the hands of one bad apple, could the same can be true for any business, even a small firm?

    According to various media reports, an alleged trading scheme at the Swiss investment bank went undetected for three years before it was finally discovered last week that a 31-year-old trader was apparently to blame. The trader, Kweku Adoboli, has since been arrested by U.K. authorities and charged with triggering a $2 billion loss.

    Last year, I wrote a Small-Business Boss column on how many small-business owners inherently treat their employees like family and therefore do without strict internal controls, security cameras or other defensive tactics. For this reason, they actually tend to be even more vulnerable to employee fraud than large firms.

    In the story, I noted employee frauds at businesses with fewer than 100 employees cause a median loss of $200,000 — $57,000 more than the median losses that larger organizations suffer, according to the Association of Certified Fraud Examiners estimates. James D. Ratley, president of the Austin trade group, says those figures stand firm today.

    What’s more, Ratley says most crimes of this kind are only discovered by accident, such as when a check bounces, a vendor lodges a complaint or the offender gets laid off or goes on vacation. Other times, “the fraud has gotten so large, it topples under its own weight,” he says. “The red flags become more and more glaring.”

    Read the Full Article on Wall Street Journal.com

    Good luck.

    Calvin Wilson
    Founder and CEO
    Upstart: Business and Management for 20-40 Year Old Professionals
    calvin.wilson1@verizon.net
    http://twitter.com/Upstart__Nation

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