Tamara Wallace, 55, used her position as chief operating officer to steal from Donate 2 Impact in Dallas. She started small but by 2018, her last full year at the company, she stole about $575,000, according to court documents.To help prevent and detect fraud at your company, here are tips from the study, starting with “the most cost-effective way to limit fraud losses is to prevent fraud from occurring.
Living beyond their means was the most common red flag, being present in 42% of the cases, followed by financial difficulties, found in 26% of cases, according to the study. Small companies and nonprofits are particularly vulnerable to fraud because they tend to lack internal controls. The average loss at a nonprofit was $639,000, the study found.