Cyber fraud costs SMEs more than £1,000 per case

Barclays Bank is stepping up a nationwide initiative to help small and medium-sized enterprises (SMEs) tackle fraud and cyber crime in the light of research that shows 51% of IT and telecoms SMEs are targeted by fraudsters, with 29% of attempts being successful.

The research also shows that fraud has cost small IT and telecoms businesses more than £1,000 per fraud and that online fraud has resulted in the loss of more than 50,000 UK jobs to date because targeted SMEs had to make redundancies to recover costs.

The job loss estimate is based on the statistic that there are 5,687,000 SMEs in the UK, that 10.6% of the more than 1,000 SMEs polled reported that they had been victims of cyber fraud, and 8.58% of these had made staff redundant to cover the cost of cyber crime.

The findings were unveiled at a cyber skills masterclass for Barclays Business Banking clients, hosted by former England international footballer and business owner Sol Campbell.

According to Barclays, there has been a rise in sophisticated fraud with criminals targeting SMEs. This includes social engineering attacks such as emails or phone calls impersonating people such as suppliers, staff members or even the CEO, tricking victims into giving out information or making payments.

With two-thirds (66%) of IT and telecoms small businesses currently offering their staff no cyber security training, there is a worrying gap in awareness and skills, the survey report notes.

Barclays said it had stepped up its efforts to educate customers, including SMEs, about the growing risks of fraud and cyber crime, investing more than £18m in the past 24 months in its national Digisafe campaign, which has already engaged five million people.

The bank also claimed to have prevented more than £857m of potential fraud and scams in the past year.

In 2017, Barclays hosted webinars attended by almost 7,000 SMEs to help keep them safe, and aims to raise that figure to 30,000 in 2018. It also hosts workshop events across the country.

Sol Campbell said: “With a rise in online crime, it’s more important than ever that businesses keep an eye on the ball when it comes to cyber security.

“In business, as in football, you have to be strong, versatile and flexible – and as a defender, you need to trust your natural instincts. If an email or call sounds fake, check it.

“Playing as a team and training are vital in business as well as sport. Managers should invest time in letting staff know about the dangers of scams.

“As an owner of a small business that has fallen foul of cyber criminals, I’m particularly keen to raise awareness and show fraudsters the red card.”

“As an owner of a small business that has fallen foul of cyber criminals, I’m keen to raise awareness and show fraudsters the red card”

Ian Rand, CEO of Barclays Business Banking, said: “We’re on a mission to educate all small businesses of the growing risk of cyber crime and fraud.

“The staggering cost of these crimes can stop a small business from investing in new jobs, training or equipment, in turn boosting local economies.

“Fraudsters are targeting hard-working entrepreneurs, in some cases impersonating suppliers and staff, intercepting emails and sending fake invoices.

“However, the good news is that the vast majority of fraud against businesses can be easily prevented. Simple steps to increase security, such as having strong passwords and increased staff awareness, can all help combat fraud.”