Fraud costs SMEs millions

Small companies are loosing up to £800m a year to fraud and online crime, according to a survey by the Federation of Small Business (FSB).

Over 50% of small businesses reported that they had been victims of crime in the last 12 months. Of those surveyed, 37% had problems with phishing emails, and 15% were victims of card fraud and IT problems caused by viruses and hackers.

"E-crime is becoming an increasingly serious issue for small firms, which are losing up to £800m a year to fraud and online crime - a cost which could have a significant impact on a small business," said Mike Cherry, FSB home affairs chairman.

The survey also revealed that a third of small firms do not report fraud or online crime to the police or their banks because of a lack of faith in the system and that 53% want clearer information about how and where they should report this type of crime.

Over 80% of those surveyed revealed that they would report fraud if a designated reporting centre was set up to gather data and follow through with prosecutions, like the centre that is already operating in Wales.

Source: http://www.newbusiness.co.uk