According to Family Enterprise USA, 87% of U.S. companies are family businesses, which are responsible for 54% of gross domestic product or $7.7 trillion. Although family businesses are an economic pillar of strength, several studies have found that they’re more vulnerable to occupational fraud than other companies. Here’s what you need to know if you run a family business. Loyalty can hamper prevention Why might family businesses be more vulnerable to fraud than other companies? For one thing, prevention efforts can be hampered by loyalty and affection. One of the biggest obstacles to fraud prevention is simply not being able to acknowledge that someone in the family would be capable of initiating or overlooking unethical or illegal activities. Like any other business, family enterprises must include a system...

If most of your employees have worked from home since the start of the pandemic or are only gradually transitioning back to onsite work, your office may be emptier than in pre-COVID days. This can make theft easier. “Creepers” can gain access to offices or other physical facilities via unlocked doors and social engineering techniques and steal whatever they can get their hands on. They may even engage in corporate espionage and network hacking. Common schemes In a common creeper scheme, individuals pose as employees. They might enter a normally locked office by chatting with employees outside the building, then follow them through the door. If questioned, they could claim they left their badges at home. When the coast is clear, they steal purses, mobile devices and...