What is the most prevalent type of fraud affecting small businesses today?
Ken Springer: I think the biggest fraud we see is check tampering, at least, that’s probably the biggest way people get hurt. It’s because no one’s watching the cookie jar. In the 19 years I’ve had this company, we’ve done a lot of fraud investigations at small to midsize businesses. We’ve seen they don’t want to spend the money to put controls in place that bigger companies have. For instance, some smaller companies don’t want to pay the money to have an annual audit, but when you have an audit, there are checks and balances so that people can’t commit fraud as easily. Some smaller companies also don’t want to spend money to do background checks on their staff. If people did background checks on their employees, a lot of problem employees would go elsewhere. What are the other major frauds small businesses should be looking out for? One is inventory fraud. Many times you have merchandise being loaded onto trucks for delivery, but no one’s actually watching them. We just worked for a t