Family businesses make up the vast majority of companies in the United States and produce 62% of the country’s gross domestic product, according to the Conway Center for Family Business. Generally defined as companies that are majority owned by a single family with two or more members involved in their management, family businesses can be a significant source of wealth. But they also potentially face higher fraud risk. Recent research published in the Journal of Business Ethics found that auditors assess the risk of fraud in the family business as higher than for non-family businesses. Here’s why, and how you can reduce that risk. Major obstacles involved Why might family businesses be more vulnerable to fraud than other companies? For one thing, prevention efforts can be hampered...