France: Fraud, a major challenge for SMEs: #1 anticipate, secure, alert!

According to a recent survey, 69% of companies have experienced at least one fraud attempt during the past year. Yet, the risk remains widely underestimated, particularly by SMEs, where the average cost of confirmed fraud reaches €62,755, excluding numerous indirect impacts such as legal fees, restructuring costs, reputational risks, and more.

Too mature to rely solely on informal controls, but not large enough to implement complex and costly systems, SMEs are particularly vulnerable to internal fraud, even when they belong to an international group.

However, simple preventive measures, an effective response plan, and regular external support can significantly reduce the impact of fraud on a company.

3. PREVENTION

• Ethical culture and staff awareness :

  on fraud risks, warning signs, and best practices.

• Formalize a code of conduct :

  with clear rules and communicate potential sanctions.
  
• Encourage cross-department communication​ :
  to break silos and strengthen collective oversight.​
  
  

Operational controls and supervision

• Restrict access. :

  to certain tools and software based on roles.

• Reinforce internal controls :

  through cross-checks, monitoring sensitive flows, and ensuring traceability.

• Reinforce internal controls :

  by segregating critical tasks and applying the four-eyes principle.

• Use data analytics and reporting :

  to track key indicators and detect anomalies.

• Conduct targeted fraud audits :

  with regular reviews by experts to test system effectiveness..​
  

Conclusion