Part 1: What Small Business Owners Are Up Against
(This is Part 1 of a 3-part series on small business fraud prevention, co-authored by Elevate Small Business and TD Bank USA)
No matter what kind of business you run, a small shop, a growing company, or something in between, there is one problem every business owner has in common: the risk of fraud.
According to the FBI, businesses and consumers lost $16.6 billion to fraud in 2024 alone, a 33% jump from the year before. That number is still climbing.
The good news? There are straightforward steps you can take to protect yourself. And you do not need to be a financial expert or spend a lot of money to do it.
The Next Two Years Will Require Extra Vigilance
Running a small business has never been easy, but the next 12 to 24 months are shaping up to be particularly challenging. Inflation and rising costs are squeezing margins. Finding and keeping skilled workers remains difficult. Supply chain shifts, regulatory changes, and uncertainty in global trade are all adding pressure on smaller firms that have less room to absorb the impact.
And yet, one of the most enduring qualities small business owners have is resilience. They are finding ways to adapt, and many remain optimistic about growth.
But there is one challenge that does not get enough attention: the rise of sophisticated fraud targeting small businesses.
In South Florida alone, 53% of small business owners say they have experienced fraud or attempted fraud in the past 12 months. At the same time, 88% of small business owners in the region report having six months or less of emergency savings, according to TD’s 2026 Small Business Financial Preparedness survey. That combination — a limited financial cushion and a high rate of fraud exposure — puts many businesses in a genuinely vulnerable position.
Why Small Businesses Get Hit the Hardest
Big companies would seem to be the bigger targets. But small and mid-sized businesses tend to lose more when fraud strikes.
A study from Florida Atlantic University found that small businesses lost an average of $200,000 to fraud, compared to $104,000 for larger businesses. Why the difference? Large companies have entire departments dedicated to catching fraud, people whose only job is to monitor transactions, review records, and train staff on what to watch for. Most small businesses do not have that. The team is small, everyone is busy, and financial oversight often falls to just one or two people.
This is the reality of running lean. But it does mean that when fraud happens, it can go unnoticed for a long time. And the longer it goes unnoticed, the more money walks out the door.
Start with Trusted Advisors in Your Corner
One of the most important things a small business owner can do is stay connected to people and organizations that can help them stay informed. Organizations like Prospera and the Miami-Dade Chamber of Commerce are trusted partners in the local small business community and can be valuable resources when you have questions, need guidance, or want to understand what risks other business owners in your industry are encountering.
You do not have to navigate this alone.
Continue reading: Part 2: The Ways Fraud Actually Happens | Part 3: What You Can Do Starting Today