Fraud worries for small business

More than a third of owners of small businesses see fraud as the single biggest threat to their company, new research claims.

Around 38 per cent of owner-managers said fraud was the biggest security issue they faced, compared with 36 per cent who were most concerned about burglary, according to accountants MacIntyre Hudson.

Among those worried about fraud, just over a quarter are concerned that the crime could be committed by one of their own employees.

However, only 39 per cent of business owners check for irregularities by carrying out spot checks and only 26 per cent require cheques to be double signed.

Meanwhile, even though 82 per cent of owner-managers followed up references for new staff, only 39% check the legitimacy of their qualifications and just 34 per cent carry out criminal record checks.

Howard Lewis, partner at MacIntyre Hudson, said: "Fraud in the workplace is as common in smaller business as in a large company.

"However, for smaller businesses, it is more difficult and time consuming to undertake the necessary checks. Moreover, the close family-type working environment which characterises many owner-managed businesses is often based on mutual trust."