“Economic crime,” stated the survey report, which was conducted in association with Martin-Luther University and the University of Halle-Wittenberg, “is a pervasive and growing threat to U.S. and North American businesses of all types.”

“Among US and North American companies that were subject to economic crime,” continued the survey, “asset misappropriation touched three-quarters of them. Fraud, the most damaging type of economic crime, touched about half.”

To make matters worse, the survey found that “Internal control systems detected only 41 percent of these economic crimes.”

For small businesses in particular, these types of economic crimes can be financially devastating. Yet despite the pervasiveness of these incidents, and the serious financial risk they pose, a mere 25 percent of companies think that they will fall victim to such crimes over the next five years.

Companies should not be complacent and assume that the internal systems they have in place are sufficient.

“Economic crime is difficult to combat for the simple reason that much of it is hidden,” reported the study. “Our study shows that in North America, 59 percent of study respondents from companies affected…reported that their risk management or internal controls failed to detect these crimes.”

The answer to this rising problem is to implement multiple measures to detect and control these types of crimes.

“Not all control measures will detect all types of economic crime;” said the survey report, “therefore, a ‘portfolio’ approach to managing this risk is important.”

Combining sound internal audit processes, whistle-blowing procedures, security measures such as dual signatures on checks and independent verification of purchases can significantly reduce the odds that a company will be a victim of economic crime.

The fight against fraud is a constant struggle,” stated the survey report. “Companies must not drop their guard.