Online crime and fraud cost small businesses £800 a year,
according to the Federation of
Small Businesses (FSB), which is calling for more action to
tackle the problem.
A survey by the FSB, which represents more than 215,000
businesses, found more than half (54%) reported being a
victim of crime in the last year. Only one-third reported it to
the police or their banks because they lacked faith in the
system.
This mistrust arose following the absorbtion of the former
National High Tech Crime Unit into the Serious Organised Crime
Agency in 2006, which left no-one responsible for
commercial and technology e-crimes.
The FSB said nearly 40% of respondents had had problems with
phishing emails, 15% fell victim to card not present fraud, and
another 15% suffered IT problems caused by viruses and hackers. The
financial costs of fraud ranged between £500 and £5,000, with an
average cost of £768 a year, it said.
More than half (53%) of the small businesses surveyed said they
needed clearer information about how and where to report this type
of crime. Some 44% wanted a named contact in their local police
force specifically focused on fraud and online crime.
Some 85% of English and Scottish businesses said they would
report fraud if there was a designated reporting centre to gather
data, investigate the crime, and follow through with prosecutions.
This echoes steps already taken in Wales, which already has a
reporting centre.
The FSB called for a central, well advertised and accessible way
to report fraud and e-crime. But it also wanted assurances that the
authorities understood the issues and could act on the
information.
Respondents want the Police Central e-Crime Unit (PCeU), which
is expected to be launched on Monday, and the National Fraud
Strategic Authority, to set up a National Fraud Reporting Centre
this year, the FSB said. They need to work together closely to
ensure the centre is established soon and fulfils these criteria,
it added.
The FSB also wants a local police contact to specialise in fraud
and e-crime with respect to small businesses, and for banks to warn
businesses up front of card not present fraud.
FSB chairman Mike Cherry said the cost of e-crime could hit a
small business hard.
"It is important that the Police Central e-Crime Unit and the
National Fraud Reporting Centre work hand in hand to set up an
effective system to gather intelligence and use it to investigate
and prosecute when this crime occurs. Businesses are currently
simply being left very exposed," he said.