Scottish SMEs less targeted by cyber criminals than businesses in rest of UK

The findings revealed that 31 per cent of SMEs surveyed had been targeted, compared to the national average of 44 per cent.

Of those targeted, one in five (20 per cent) fell victim, close to the national average of 23 per cent and surprisingly, 75 per cent said they spent nothing on fraud prevention methods for their staff in the past year – the highest region in Britain.

The new research suggests that online fraud has resulted in the loss of more than 50,000 British jobs to date as SMEs had to make redundancies to recover costs.

The average cost of a fraud to a UK business was almost £35,000. If these figures were applied to the nation’s more than five million SMEs, the total cost would equate to £40 billion to date.

In two thirds of cases, the businesses had to cover these costs themselves – money that could otherwise have been invested in jobs, training or new equipment.

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

The research also reveals that only half of small business victims (54 per cent) reported the crime to the police, and over a quarter (28 per cent) do not even tell staff when a breach has happened.

Barclays has stepped up its mission to educate customers, including SMEs, about the growing risks of fraud and cybercrime, investing over £18 million during the past 24 months on its national Digisafe campaign, which has already engaged five million people. The bank has also prevented over £857 million of potential fraud and scams (more than £35 per customer) in the last year.

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

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