SMEs being conned by consumers

A survey conducted by the Federation of Small Businesses, or FSB, has come up with some startling revelations. Three out of every 10 companies have been duped financially and the culprit is most cases (13 percent) are customers or a client while ‘card not present’ accounts for 10 percent of the fraud cases.

This apart, the other most potential threat that has emerged for businesses is virus infection, something that 20 percent businesses have already had to deal with. Hacking has emerged as the next big threat to which 8 percent respondents have fallen victim to while 5 percent said they had to deal with security breaches.

The survey further revealed that 20 percent of those who responded still remain exposed to cyber threats. What has also emerged as a matter of concern for the economy as a whole is that small firms are not comfortable enough to trade online given the perceived weakness in the security scenario prevalent.

36 percent of the companies polled though have stated they update their online security apparatus to protect themselves from online fraud. Similarly, six out of 10 companies have stated they update their anti-virus software to minimize risks of virus attacks.

FSB national policy chairman, Mike Cherry too has acknowledged the dangers posed by cyber crime to small firms, something that will be perilous to ignore. Cherry stated that while companies are expected to adopt means to protect themselves from cyber crime, he stated that ‘the cost of crime can act as a barrier to growth’.

MP parliamentary under secretary for security, Home Office, James Brokenshire also stressed on the need to have proper measures against cyber crime. He stated that the government is committed to ensuring proper security environment to allow all companies irrespective of their size to flourish.