Small firms urged to strengthen online security
Small businesses need to take more precautions to make sure that they do not fall foul of online fraud, a new report has said.
According to a study commissioned by Get Safe Online, an internet security awareness initiative supported by government and business, some 44 per cent of small firms have been victims of cyber crime.
The crimes include scams, identity fraud, phishing and data theft.
Of those businesses that have been affected, 36 per cent reported that their computer systems had suffered a virus, while 18 per cent said that they had been subjected to internet scams.
Almost two in every of five small businesses that had experienced online criminal activity or related IT problems had lost revenue as a result of computer downtime. The average loss was calculated at £1540 per firm, which, taken across the whole of the UK’s small business community, would amount to a colossal £750 million a year in vanished income.
Even though they are faced with growing sophistication on the part of the criminals, only 5 per cent of the small businesses questioned had access to dedicated IT support, whether an in-house team or an outsourced provider. The vast majority of business owners assumed responsibility for keeping pace with the latest internet security issues themselves.
Quite how good a job those owners are doing is debatable. By their own admission, barely a third believed they were fully conversant with recent developments in threats to online security and the appropriate counter-measures. And this despite the fact that two-thirds of small firms store vital information on their computer systems.
Commenting on the findings, Tony Neate, managing director of Get Safe Online, said: “The good news is that small businesses are taking the general basic steps to protect themselves – for example, 97% of those surveyed in our research protect their IT equipment with anti-virus software.”
Mr Neate continued: “However, as cyber crime becomes more sophisticated, basic measures aren’t enough on their own. Businesses also must look at access control, data encryption and secure password practices, as well as looking at other measures such as staff training. But, it’s also important to remember that by taking a few simple precautions, online risks needn’t overshadow the huge benefits that the internet brings to UK businesses.”
To help small businesses establish an effective internet security policy, Get Safe Online has recommended a series of measures that they can implement. These include protecting IT equipment from theft, securing remote access, preventing data theft using removable devices, using encryption, protecting e-commerce websites, avoiding risks when selling commercially on auction sites, controlling access to critical information and complying with the Data Protection Act.
Date:25 June 2007
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