A report in the Irish Independent recently claims that a third of Irish SMEs were targeted by fraud during 2018.
The most common types of fraudulent scams encountered were:
- phishing emails – experience by 70% of SME
- invoice redirection scams – experienced by 50% of SMEs
Of those that were targeted, one in every 18 attempts at defrauding SMEs was successful.
Despite considerable awareness among SMEs regarding the threat of financial fraud to their business, the research has found that two-thirds do not have fraud awareness guidelines and training in place.
The impact of falling victim to a financial fraud scam can be devastating for a small business. While it is possible to insure against certain fraudulent activitities, it is much more prudent for businesses to familiarise themselves with the types of scams they can be targeted with, and take the necessary precautions to prevent them.
So small business owners, be vigilant and ensure your staff are too.