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Digital Identity, Security & Online Fraud

48 percent of SMBs think they are not big enough to be targeted for fraud

Monday 11 March 2019 | 10:34 AM CET

A report from Emailage has revealed that 48% of small businesses in the US and Canada think they are not big enough to be a target of online fraud.

Until this mindset changes, these businesses will continue to incur more losses, as small businesses in the US reported losing an average of USD 28,313.33 to online fraud in 2018. Yet 58% of small businesses also said they believe large organizations create a bigger target for fraudsters.

Emailage carried out the research with a survey of 1,000 people in leadership positions in small businesses. And the participants in the survey included owners, executives or senior management, as well as middle management from organizations across the US and Canada.

The report Size doesn’t matter: Why fraud prevention is a strategic investment for SMBs shows a lack of concern among many SMB owners when it comes to fraud prevention. These businesses work with considerably smaller profit margins. Therefore, losing even a fraction of their revenue could have major repercussions for their businesses, impacting long-term growth and business development, said Emailage CEO Rei Carvalho.

The speed at which small businesses adopts digital technology continues to grow. And this rate of adoption makes small businesses ever more susceptible to dangers from online fraud.

Small businesses enjoy the benefits of digital technology, but they lack the resources of large organizations to fight off the dangers. Suppose small businesses fail to prevent, contain or resolve fraudulent attacks. Resulting damages can prove disastrous. These damages go beyond financial loss. Businesses will take a hit to their reputation and brand too. Two in five small businesses said they have seen what the damage to a company’s reputation does.

Now 40% of small businesses use email verification to prevent online fraud, the report says. Emailage recommends small businesses find a reliable fraud prevention provider. This provider should offer a collaborative approach to your niche requirements, a network of expertise and insight and sophisticated multilayered approach.

More: Link
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