There are three primary reasons that a company does not move forward with dedicating resources towards fraud management.

The Nature of Fraud Can be Intimidating
The fraud industry employs unlimited dynamics, geared towards exploiting the systems that a company has in place. This idea is both daunting and unfamiliar to business owners, regardless of their aptitude in their own respective field.

Time
I have encountered countless business owners who do not have the time that it takes to understand the concepts at play and are willing to accept the losses incurred by fraud as “losses” or expected costs, sometimes expecting to lose upwards of a quarter-million dollars annually due to this.

Acceptance
Many administrations have grown to accept losses incurred by fraud as “Operational Expenses”. A company with an annual revenue of $200m losing 0.5% to fraud and exploits is often interpreted as an acceptable operational cost. 

But, take into consideration that the 0.5% is AT LEAST $1,000,000 being stolen from from your company. This amount is not an investment in marketing, nor a warehouse expansion. There is NO ROI on this expense and it is more likely that if you see an amount in this way, your losses are 2 or 3x more than that number, when you consider the lost transaction amount, loss of products or services rendered, processing, fulfillment, and more.

Thank you and be safe!