Businesses are failing spectacularly in their security provision, according to reports by Datamonitor and Control Risks Group (CRG).
Datamonitor's White Paper Removing the Roadblock to E-business says few online businesses are taking security seriously enough, with the majority spending just 5% of their budgets on securing company assets.
This complacency was also identified by CRG, which recently questioned more than 100 key personnel in FTSE 500 organisations.
CRG found that only 54% of the companies had conducted a penetration test on their IT systems, while less than half believed that the costs of making networks secure outweighed the possible losses.
Datamonitor's research is based on a survey of 250 IT network managers and 12,000 consumers in the UK and Europe.
Ian Williams, technology analyst at Datamonitor, said, "Despite the fact that a significant number of firms have suffered problems with unauthorised access, over 30% have yet to implement adequate security."
Datamonitor estimates that the 'I love you' virus in May caused $1bn worth of damage to businesses worldwide and is urging users to realise that better security is an integral part of being a successful business.
Williams said, "The best thing a company can do is to get some good advice from someone. [The attack] at Microsoft shows that no matter how good your systems, you are still under threat."
This was first published in November 2000