Online Fraud for Small Businesses Increases

  • Fraud Prevention, Internet Fraud

According to numerous industry sources, attacks targeted at small businesses and startups has doubled in the first half of 2012. Targeted attacks are tailored specifically to a certain company or type of business and hackers develop malware and strategy catered to their victims. Small business owners may find this shocking that hackers and identity thieves would go through so much trouble to target their company. Even though it may seem logical that most online fraud is geared towards larger companies with huge accounts to hack, small businesses make for an easier target.

Small business owners and start-ups usually have fewer resources than big companies to monitor and prevent fraud. This is not just technology and budget but manpower. Small businesses usually have fewer staff members who have more responsibility and are busy tending to business activities that help grow the business. Fraud prevention is usually an after thought, or thought of as something that only large enterprises can afford. Small business also tend to have more of an online presence due to lack of a brick and mortar store or budget. With ecommerce, mobile payments, and social payments, the Internet is the perfect place for small start-ups to create a presence. Many small business owners may not have a fraud prevention system in tact for the simple reason that they do not think they need one. These are some of the reasons why small businesses are experiencing more fraud online.

In order to help prevent fraudulent activity online, small businesses need to implement some type of fraud prevention system. Whether it is something manual or an online platform, small businesses need to protect themselves as well. The truth is, the cost of a hacking or lawsuit due to identity fraud, could end up costing a small business more than just implementing a way to prevent it. Using identity verification and authentication can help ward off unwanted visitors from accessing site information or activity. It can also help to prevent any stolen identity information from being processed on a site. By implementing these tactics into a companys online presence, small businesses can save themselves the trouble of a breach down the road.

[Contributed by EVS Marketing]