International Fraud Awareness Week—or Fraud Week—is fast approaching, set for November 17-23, 2024. Launched in 2000 by the Association of Certified Fraud Examiners (ACFE), Fraud Week calls on businesses and individuals to shine a light on fraud impacts and prevention. By dedicating a week each November to this mission, the campaign encourages leaders and employees alike to engage in anti-fraud training, share resources, and spread awareness of fraud risks.
The Stakes are High
ACFE estimates that fraud costs organizations approximately 5% of their revenue annually, adding up to trillions of dollars globally. However, proactive measures can make a difference. Companies with dedicated fraud awareness training experience nearly 50% lower losses from fraud than those without it, according to ACFE’s 2024 Occupational Fraud Report.
Companies with dedicated fraud awareness training experience nearly 50% lower losses from fraud than those without it.
This year, Burkland joins nearly 900 other organizations worldwide in participating in Fraud Awareness Week as an official supporter, pledging to increase education around fraud’s impacts and preventive strategies within our company and community.
Financial Fraud Hurts Startups
Startups are particularly vulnerable to financial fraud due to limited systems and controls, fewer resources, and minimal cash buffers. A single incident can erode a startup’s runway, harm employees, and undermine trust—both within the company and with investors. To help protect your business, we’ve compiled essential resources that can bolster fraud prevention measures within startups.
Fraud Prevention Resources for Startups
- How to Be a Fraud Fighter in Your Organization
Download this PDF to share with your employees and help them understand what fraud is, why prevention matters, key warning signs, and effective prevention strategies. - Occupational Fraud 2024: A Report To The Nations
ACFE’s 13th annual comprehensive report on occupational fraud examines the financial toll, common schemes, and profiles of victims and perpetrators, drawing actionable insights from 1,921 real cases across 138 countries and 22 industries. - Startup Financial Fraud: Tips to Mitigate Your Risk
This blog article from Burkland offers resources for startups and investors, including an overview of internal controls and fraud detection measures to lower risk. - Financial Systems & Controls Matrix
Over half of occupational fraud incidents result from either a lack of internal controls or overrides of existing ones, according to ACFE’s 2024 report. Burkland’s financial controls matrix provides a practical guide for startups to establish and adapt internal controls as they scale. - Federal Trade Commission Fraud Reporting
The FTC’s website at ReportFraud.ftc.gov enables you to securely report fraud to more than 2,800 law enforcement agencies. It also provides educational resources to help protect yourself and your community from fraud.
Over half of occupational fraud incidents result from either a lack of internal controls or overrides of existing ones, according to ACFE’s 2024 report.
Action Steps for Startups to Reduce Fraud
- Implement Regular Fraud Awareness Training: Educate employees at all levels about fraud risks, red flags, and reporting processes.
- Establish Strong Internal Controls: Regularly assess and update financial process controls to minimize vulnerabilities.
- Conduct Background Checks: Screen employees, vendors, and business partners to reduce potential risks.
- Encourage a Whistleblower Program: Provide anonymous ways for employees to report suspicious activity without fear of retaliation.
- Monitor Financial Activity Continuously: Use software solutions to track irregularities in financial transactions and flag suspicious activity.
- Review Vendor and Expense Policies: Clearly outline vendor approval and expense reimbursement policies, ensuring proper oversight.
Preventing fraud can feel like a daunting task, but you don’t have to navigate it alone. Burkland specializes in financial services designed to help startups like yours establish secure, scalable financial practices. Contact us to learn more about how we can protect your business from fraud and drive sustainable growth.