Workplace Fraud in Canada - A Few Facts

I have been having an email conversation with a colleague about growing my practice, attracting new clients and marketing my practice. He currently has a business which provides comprehensive validation of the criminal and professional status of service providers (www.iHonest.ca). In perusing his website I found the following interesting facts: 1) 12% of Canadians have a criminal record, this equals over 4 million people! 2) In 2008, over 90,000 incidents of fraud are reported to authorities. 3) The Canadian Anti-Fraud Centre reports it is believed that only 5% of fraud is reported, that means thieves get away with stealing your hard earned money 95% of the time! 4) In 2010, CGA Canada conducted a study on fraud and found that losses due to fraud totalled about $3.2 billion dollars. That's billion with a B. The writers of the report indicate they believe the true figure to be much higher. 5) In 2010, the Association of Certified Fraud Examiners released a report, "Report to the Nations - on Occupational Fraud and Abuse" which states that 24.7% of occupational (workplace) fraud originates in the accounting department! 6) In the US it is estimated that there is $100 billion in occupational fraud every year, and it is the main reason for 1/3 of the business bankruptcies in the US. 7) Professionals and service providers are having an increasingly difficult time establishing themselves as trustworthy because prospects and clients have been ripped off in the past and are reluctant to trust anyone new. This is shocking! In a way, though, it shouldn't be. When you think about the financial scandals such as Ponzi schemes, Enron and the dissolution of Arthur Andersen after the loss of their public accounting licenses, it makes a certain amount of sense. The reputation of the financial services industry has taken a hit. Remember, when you are hiring a professional service or service provider, do your due diligence. Ask for and check references. Verify professional association membership status. Verify education by contacting the candidate's educational institution. Always do your homework! In addition, have a list of qualifications or core competencies at hand when you meet with potential service providers. I have a list of qualifications to look for when hiring a bookkeeper or bookkeeping service. Go to my Contact Me page and request your free copy. Even if you don't choose my services, you will have the best qualified bookkeeper for your business.