E-crime scares SMBs off online sales

Online fraud and crime risks are scaring small and medium businesses (SMBs) off of e-commerce, according to the Federation of Small Businesses (FSB).

Despite the internet generally being an ideal, low-cost marketplace for niche and small businesses, just 18 per cent of SMBs sell online and one per cent are web-only businesses.

Although six per cent have been hit by online credit card fraud, 19 per cent of such businesses consider it a significant concern.

"The extent to which the UK's small to medium enterprise sector is engaged in e-commerce is an issue of considerable economic significance," said David Croucher-Jones, the FSB's home affairs chairman.

He called for recommendations from the recent Lords Science and Technology Committee report to be implemented, to protect e-crime victims and create a safer online marketplace.

"We applaud the Lords Committee for having highlighted and recommended proposals that are essential to internet trade moving forward - but recommending and doing are two different things," he said. "E-crime needs to be given the same status as crime that is committed against a bricks and mortar business. Only when this is accomplished, by implementing the Lords recommendations, can more small businesses benefit from having a stronger online presence."

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