March 2019

New Fraud & Privacy Resource Center helps protect your business

Fraud can be devastating to small businesses, impacting them harder than businesses with 100+ employees. According to a 2018 report from the Association of Certified Fraud Examiners,* the median loss to a business with fewer than 100 employees is $200,000. Businesses with more than 100 employees suffer a median loss of $104,000.

  • In 2015, the IRS identified 233 business tax returns that were filed using known or suspicious EINs, of which 97 claimed refunds exceeding $2.5 million.
  • The IRS has found that identity thieves apply for and/or obtain an EIN using the name and Social Security number of another individual as the responsible party.
  • Median loss due to fraud from businesses with fewer than 100 employees was $200,000, versus $104,000 among businesses with 100 or more employees.
  • Fraud caused by lack of internal controls was at 42% for businesses with fewer than 100 employees, versus 25% for businesses with 100 or more employees.

Small businesses vulnerable to fraud

Typically, small businesses have fewer resources to prevent and recover from fraud, and they often require an increased level of trust in employees due to a lower ability to implement robust anti-fraud controls.

Whether your business has already experienced fraudulent activities — like identity theft or cyber security threats — or you’re looking to identify threats before they happen, visit our new Fraud and Privacy Resource Center for valuable information including:

  • Protecting your company during tax season
  • Identifying and protecting your business from business identity theft
  • Keeping your incoming and outgoing payments secure
  • In 2015, the IRS identified 233 business tax returns that were filed using known or suspicious EINs, of which 97 claimed refunds exceeding $2.5 million.
  • The IRS has found that identity thieves apply for and/or obtain an EIN using the name and Social Security number of another individual as the responsible party.
  • Median loss due to fraud from businesses with fewer than 100 employees was $200,000, versus $104,000 among businesses with 100 or more employees.
  • Fraud caused by lack of internal controls was at 42% for businesses with fewer than 100 employees, versus 25% for businesses with 100 or more employees.

Your security is our top priority

Contact your Small Business Banker for more ideas to keep your business secure.

*Source: 2018 report from the Association of Certified Fraud Examiners

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