Three Church Fraud Truths
1. Truth #1: Church Fraud is Prevalent.
One third of all congregations will fall victim to fraud – If a third of all churches are victims of fraud, what is the chance that this is happening right now at your church? Because…most frauds go on for 18 months before getting caught.
2. Truth #2: Church Fraud is also Costly
According to statistics by the Association of Certified Fraud Examiners, religious and charitable organizations experienced a median loss of $80,000.
But what about other potential issues fraud (or embezzlement) can induce?
– IRS Issues
– Damaged Reputation
3. Truth #3: Church Fraud is often committed by whom you least suspect
According to statistics by the Association of Certified Fraud Examiners, 95 percent of all fraud cases reviewed, the perpetrator was a first-time offender with no prior criminal conviction.
And, sadly, in most cases the offender is one of the most trusted people in the church who’s pilfering from the collection plate, or diverting funds from the church budget or investment accounts.
There is Good News:
1. Fraud CAN be prevented.
The number one deterrent of fraud is the fear of getting caught – Create policies, procedures and controls so any would be thief will think twice about stealing God supplied church resources. Talk about the church’s commitment to safeguard resources and put potential thieves on notice that your church is watching.