There are all kinds of bad actors who target small businesses like HVAC contractors. Sometimes it’s a slick-talking con artist with a can’t-lose investment opportunity that seems too good to be true. Sometimes it’s the employee doing the books — the one who never takes a day off and seems too good to be true.
It’s not a question of if a contractor will encounter a fraudster, but when. Business owners need to be aware of this — to watch for and plan for how to deal with fraud if it happens. And if it happens, it can prove costly. It can also go undetected for long periods of time. Insurance firm Hiscox surveyed CFOs, controllers, and accountants who have worked at a company where embezzlement has occurred. Thirty-nine percent of respondents experienced two or more cases of embezzlement during their careers, showing just how common it is. Seventy percent of these schemes lasted for more than a year.