Fraud Toolbag for Owners
Spotting Trouble Before It Drains Your Business
Running a business is a grind—competition, taxes, regulations, rising costs, and supply headaches keep you on your toes. But there’s a hidden threat many small and medium business owners miss: fraud from within. It’s sneaky, costly, and often flies under the radar because most don’t have systems to catch it. The good news? You don’t need fancy software—just sharp eyes and a little know-how.
The Association of Certified Fraud Examiners (ACFE) has studied fraud and for nearly two decades pinpointed the same six red flags that show up time and again. Spot these in your team, and you’ve got a head start on protecting your bottom line. Here’s your Fraud Toolbag—six warning signs to watch for:
Living Beyond Their Paycheck
Flashy new cars, designer gear, or lavish vacations on a modest salary? If their lifestyle screams wealth they shouldn’t have, dig deeper.
Personal Money Struggles
Debt, gambling issues, or constant complaints about cash flow can tempt someone to dip into your funds. Desperation breeds theft.
Overly Cozy with Vendors or Clients
Too many off-hours chats or unexplained perks from a supplier? It might signal kickbacks or shady deals.
Control Freaks Who Won’t Delegate
Hoarding tasks, dodging oversight, or keeping others in the dark often means they’re hiding something—like cooked books or siphoned cash.
Defensive or Paranoid Behavior
Snapping at questions, acting jumpy, or getting oddly protective about their work? Guilt can make people prickly.
A Habit of Cutting Corners
Employees who bend rules, dodge protocols, or brag about “beating the system” are more likely to cross into fraud.
These signs aren’t proof of guilt—think of them as smoke, not fire. But paying attention to them arms you with a low-cost, high-impact way to shield your business from losses. Start by watching, not accusing. Cross-check odd patterns with your records, talk to your team, or bring in an expert if the smoke thickens. Your business deserves that vigilance.