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Business owners often spend their time reviewing revenue, payroll, and cash balances. Those are important. But there are other areas that deserve attention as well. One of them is the collection of broad accounting categories that tend to accumulate transactions over time... accounts with names like Miscellaneous Expense, Sundry Expense, Other Expense, or Personal Expense. These accounts are perfectly legitimate when used appropriately. However, because they are broad by natu

Small business owners face a difficult reality when it comes to internal controls. You may know that financial responsibilities should be divided among several employees. But what if you only have five, ten or twenty people? You still have payroll to process, bills to pay, deposits to make and financial statements to prepare. So one trusted employee gradually ends up handling much of it. That's exactly where risk can develop. A federal case involving two Anaheim companies pr

Every business owner hopes they'll never receive an anonymous letter accusing an employee of theft. But if it happens, your next decision matters. Do you ignore it? Do you confront the employee? Do you begin an investigation? The reality is that anonymous allegations deserve a careful, objective response. While some tips turn out to be unfounded, others uncover significant occupational fraud that might otherwise have continued for months—or even years. One of the biggest mis

Imagine this... You've had a strange feeling for a while. Maybe a few transactions didn't quite make sense. Maybe something just feels off. Then one morning, an anonymous note lands on your desk. It says: "You may want to take a closer look at your accounting manager." Now what? For many business owners, this is unfamiliar territory. Most have never dealt with a suspected fraud situation before. And unfortunately, some of the first decisions they make can unintentionally ma

You receive an email that appears to come from your bank. It looks legitimate. The logo is correct. The language seems professional. The message warns that your account may be locked unless you take immediate action. Would you click it? Unfortunately, many people do. And that's exactly why social engineering remains one of the most effective fraud techniques used today. What many people don't realize is that the same tactics used against consumers are also used against bus

Winning a lawsuit is supposed to be the hard part. Actually getting your money shouldn't be. One of Southern California's most well-known legal fraud cases involved client settlement funds that should have gone to clients but were instead diverted elsewhere. While the headlines focused on the individuals involved, the case highlights an important lesson for every California attorney: client trust accounts require more than trust. They require verification. Why This Matters

When most people think about fraud in a dental office, they usually picture someone stealing cash. But in a recent Southern California case, prosecutors alleged a dental office submitted nearly $800,000 in false Medi-Cal claims for work that wasn’t actually performed. That highlights an important reality many business owners overlook: Fraud risk is not always about someone physically taking money. Sometimes it develops quietly inside: billing processes documentation approval

Most business owners assume they would spot a fake vendor immediately. But in reality, vendor fraud often looks completely legitimate while it’s happening. That’s what makes it dangerous. In many fraud cases, the scheme doesn’t involve stolen cash, dramatic theft, or obvious misconduct. Instead, someone quietly creates a vendor inside the accounting system, submits invoices, approves payments, and money simply starts leaving the business. Month after month. Without anyone que

This employee gave himself a raise for six years. And no one noticed! At a California flight school, a trusted employee was eventually convicted of stealing more than $527,000 from the company. The method wasn’t complicated. It was subtle, repetitive, and hidden inside normal business activity. That’s what makes this case so important for small business owners. What Happened According to investigators, the employee inflated his own paychecks by issuing unauthorized bonuses

Last week, during a presentation at Trilogy in La Quinta, I had the opportunity to discuss a vital topic: the difference between scams and fraud. As a Certified Fraud Examiner, I focus on educating the public about consumer scams and frauds. My consulting practice specializes in occupational fraud, which refers to fraudulent activities that occur in the workplace. It's essential to raise awareness about these issues to help individuals and organizations protect themselves. Wh

A small business owner in Southern California trusted their manager completely. Same story I hear all the time: “They’ve been with me forever.” “They handle everything.” “I don’t need to look over their shoulder.” But that same trusted manager was later arrested for small business embezzlement . Investigators say invoices were shredded and cash was quietly taken over time. Not in one dramatic event. Little by little. Slow enough that no one noticed. This is how employee thef

When your bookkeeper has all the control… your bank account becomes their playground. For this week’s Fraud Friday, I’m resurfacing one of the most important cases I’ve covered, as too many small businesses still make the same mistake: One person handled the books. The deposits. The bank statements. The vendor payments. And over time… tens of thousands quietly disappeared. Here’s the real warning: Fraud doesn’t start with a mastermind. It starts with access + trust + zero o

Last week, I had the honor of standing alongside Palm Springs Mayor Ron DeHarte as he presented an official Proclamation declaring November 16–22, 2025 as International Fraud Awareness Week in the City of Palm Springs. The proclamation was issued publicly during the DBA Learns workshop: Outsmarting the Scammers , a session led jointly by Matt Howe and me as part of the Desert Business Association’s education program. It was a powerful moment, not just for us as presenters,

You trust your vendors. They deliver materials, provide services, and send invoices. In theory, you pay them in a timely manner and all is well. But what if one of those invoices is fake? Or the vendor is colluding with one of your employees to overbill you month after month? That’s vendor fraud. It's one of the most common, costly, and least-detected types of business fraud. The losses aren’t always obvious, but over time they drain profits, distort financials, and quietl

Churches and nonprofits run on trust. That’s exactly why fraud can hide in plain sight. When one person controls donations, bookkeeping, and reconciliations, it isn’t “helpful”. It’s high risk. Here’s how embezzlement happens, what boards miss, and a simple oversight checklist you can put in place this week. A (very real) pattern we see One person handles donations + deposits + accounting Bank statements arrive to that same person No second set of eyes on reconciliations Boar

By Michael Blevins, CFE — Blevins Associates Consulting When Fraud Comes From the Outside We often talk about fraud as an “inside job,”...

By Michael Blevins, CFE — Blevins Associates Consulting Fraud Isn’t “Somewhere Else” - It’s Right Here in Southern California When most...

Fraud is a word we hear often, but not all fraud is created equal. At Blevins Associates Consulting, we specialize in helping...

Have you ever had that gut feeling something just isn't right within your own business? After working with dozens of business owners,...

Fraud is a pervasive issue that affects businesses of all sizes. However, incidents involving small and medium-sized enterprises (SMEs)...