Fraud Costs Small Businesses £18bn Annually
Small and medium enterprises lose £3,450 a year due to fraud yet 32% fail to invest in data security
Fraud is costing UK small and medium enterprises £18bn a year, an average of £3,450 each, according to research by Sage Pay.
The report, part of Sage’s annual Payments Landscape Report, indicates that small businesses are failing to safeguard against fraud, with over a third (32%) of business owners having admitted to not spending money on data security.
Despite 55% of respondents stating that fraud prevention is a top priority, small businesses only spend a yearly average of £1,881 on security – half the average cost of fraud – with many having failed to install basic fraud prevention tools such as CV2.
In addition, only 21% of firms have in-house experts to tackle security issues.
Sean Wilson, managing director of Sage Pay UK, commented:
“This study shows that fraud continues to be a major issue not just for the UK’s small businesses but a big concern for consumers too. Ignoring it not only puts your business at risk, it can also drive away customers who are already sceptical about shopping online due to security concerns.
“If businesses use secure systems and are more proactive in combating crime, they can attract more customers and ultimately safeguard their revenues.”