SME fraud has cost 50,000 jobs within the UK

posted by 2 years ago in News
SME fraud has cost 50,000 jobs within the UK

The level of fraud against small businesses has totalled to a loss of 50,000 jobs around the United Kingdom, according to research conducted by Barclays Bank.

From a study carried out by YouGov, it found that 44% of SMEs have had fingers pointed at them by fraudsters while 23% have become a victim in fraudulent activities.

The study also revealed that 10.5% of SMEs have experienced a cyber-attack during their years of trading and 8.58% have had to let employees go to cover the costs of cyber-crime. When looking at the bigger picture, with 5.6m SMEs in the UK it means 52,120 jobs have disappeared. The average cost of fraudulent activity to a business was £35,000 and a potential total of £40bn to date.

Chief executive of Barclays Business Banking, Ian Rand has said;

“Fraudsters are targeting hard-working entrepreneurs, in some cases impersonating suppliers and staff, intercepting emails and sending fake invoices.

“The staggering cost of these crimes can stop a small business from investing in new jobs, training or equipment, in turn boosting local economies.”

To protect and help SMEs have a better understanding on how to avoid cybercrimes, Barclays Bank have welcomed the former England and Arsenal defender Sol Campbell who also owns a small business to help overcome cybercrimes.

He comments;

“With a rise in online crime, it’s more important than ever that businesses keep an eye on the ball when it comes to cyber security.

“In business as in football, you have to be strong, versatile and flexible – and as a defender, you need to trust your natural instincts. If an email or call sounds fake, check it.”