Fraud prevention: It’s everyone’s business
I knew something was off when the voice on the other end of the phone became increasingly angry. It was a fraud artist upset that I didn’t take the bait and provide him with my personal information, including my SIN number and driver’s licence number.
Business resource counsellors at the Canadian Federation of Independent Business (CFIB) take hundreds of phone calls each year from small business owners who have had someone try to scam them.
Fraud is a major threat to the small business community and the Canadian economy. In fact, fraud hit one in five small businesses in the past year, on average costing $6,200 per business. Small businesses also spend an average of $2,900 each year on fraud prevention.
These findings are part of a ground-breaking CFIB report titled Fraud: A Big Threat to Small Business.
While the financial losses are significant, it’s not just dollars and cents. Small business owners say the stress and hassle of fraud are actually worse than the financial impact.
Report findings shed new light on how fraud hits small businesses:
➊ Wholesalers are most likely to be the target of a fraud attempt.
➋ The retail and hospitality sectors are most likely to lose money to fraud.
➌ When it comes to reporting scams to police, 44 percent of small businesses victimized by fraud don’t report it.
➍ The most common scams to hurt small businesses are fraudulent payments, e-mail scams, directory fraud. The CFIB represents a vital link between businesses and law enforcement agencies, offering prevention through awareness-building campaigns, and compiling data directly from those who experience fraud. You can also join the conversation about fraud prevention with #BeFraudFree on Twitter.