True Stories for October 10

In our blog, we like to pass on good information we find regarding errors, fraud, QuickBooks, and other accounting material for small businesses. Unfortunately in these harsh economic times, fraud is becoming an even bigger issue for small businesses- especially workers’ compensation fraud. Here are “The Good, the Bad, and the Ugly” of workers’ compensation fraud cases in small businesses.

The Good:

The good news in this situation is that workers’ compensation fraud can sometimes be prevented. Learning how to control and prevent this type of fraud will help save you time, money, and energy in the future. Check out this article on techniques to reduce and control workers’ compensation fraud.

The Bad:

The bad news is that your business may be at higher risk for workers’ compensation fraud. There are signs that tell whether your business is a target for workers’ compensation fraud. This PDF file consists of 15 warning signs of workers’ compensation fraud, and this Fox Small Business video explains how and why it may happen.

The Ugly:

Despite knowing how to prevent workers’ compensation fraud, the ugly truth is that it still happens. It seems workers’ compensation fraud cases are increasing with the economy at a stand-still. This site states that workers’ compensation fraud is the second mostly costly type of fraud to small businesses, behind identity theft. Here are workers’ compensation fraud cases happening to small businesses around the nation.

  1. Caught in the Act
  2. Hid Payroll for an Unfair Advantage
  3. $2.7 Million Scam

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