Over half (58%) of SMEs believe the impact of invoice fraud to their business would be minimal according to a new report.
The latest fraud report from MasterCard company Vocalink Analytics has been published. It reveals that, despite business bosses being seemingly unconcerned about the impact of invoice fraud, it can have a devastating effect on their businesses.
What is the damage of invoice fraud?
Research by the Tungsten Network revealed invoice fraud actually costs UK SMEs in the region of £9 billion a year.
Payment cons such as invoice redirection, mandate and email fraud had not even been heard of by more than 33 per cent of those asked, the research suggests.
Firms that had already been stung were savvier about the dangers. 71 per cent in this category viewed it as one of the biggest risks to their business and as a continuing threat this year.
Vocalink’s executive vice president Gary Kearns commented:
“Our latest report shows a worrying lack of awareness of and concern for the potential impact of payments fraud amongst UK small and medium sized businesses.
“No business is too large or too small to be targeted by potential fraudsters, and despite official figures estimating the billions of pounds lost to businesses every year.
“SME owners, entrepreneurs and board members are not taking the necessary action to protect their businesses – whether that is checking invoices, educating their teams or introducing new technologies.”