“Many SMEs ignore or underestimate the threat that on-line fraud poses to their profitability, cash-flow and reputation” was the finding of a group of experts from the Government and industry that recently took part in a ‘round-table’ on ‘cyber crime’ organised by Digital Economy Minister Ed Vaizey.

The group of experts recommended that companies: train staff to understand cyber threats; keep software secure by always installing updates; install and use anti-virus software; and use complex passwords that include a minimum of three words and a symbol.

The experts said that the most common problems faced by businesses include staff exposing IT systems to ‘malware’ (malicious software) by plugging in external devices and USB sticks, opening infected e-mails or using unsafe Web sites with malicious code.

Mr Vaizey said: “Small businesses are driving economic growth here in the UK, but remain particularly vulnerable to cyber security breaches that can result in hundreds of thousands of pounds worth of damage. That is why Government and industry partners are working to make the UK one of the safest places to do business on-line through our
National Cyber Security Programme.”

John Allan, chairman of the Federation of Small Businesses (FSB), said: “Cyber crime poses a real and growing threat for small firms, and it isn’t something that should be ignored. Many small businesses will be taking steps to protect themselves, but many others have not recognised the increasing threat and have neither adopted technologies nor strategies to defend against cyber crime. For those that don’t, the cost can be a barrier for growth and, in the worst cases, can put a firm out of business.”