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14 Aug 2007
Comments:1
The threat of credit card fraud is driving hundreds of SMEs away from e-commerce according to the Federation of Small Businesses (FSB).
Following a House of Lords Science & Technology Committee report into fighting e-crime, the FSB claims that just 18 per cent of SMEs are selling on-line, with less than one per cent of those generating all their sales through the internet.
According to the FSB research - 19 per cent of businesses are concerned with credit card fraud, but just six per cent have actually experienced on-line fraud.
David Croucher-Jones, FSB Home Affairs Chairman, said: “The extent to which the UK’s SME sector is engaged in e-commerce is an issue of considerable economic significance. We applaud the Lords Committee for having highlighted and recommended proposals that are essential to Internet trade moving forward – but recommending and doing are two different things.
“E-crime needs to be given the same status as crime that is committed against a bricks and mortar business. Only when this is accomplished, by implementing the Lords recommendations, can more small businesses benefit from having a stronger online presence. Customers will also benefit from the increased choice and convenience that online security can bring.”
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Do you agree?
Get the balance right
David Croucher-Jones of the FSB is right to highlight the need for government intervention in e-crime (CRN 14 August). It is galling for small companies to be handcuffed by legislation on employment law, recycling and other issues, and often treated like criminals, when the real criminals are getting away with it. A good start would be much better support from the police for reported cases of online fraud. Right now, they don't seem to care anything like enough.
Where I would take issue is the implication that SMEs are not playing a full part in the online revolution. In fact, there are thousands of success stories. Actinic's recent SME ecommerce survey reported a record 90 per cent of SME online stores saying that they are profitable. And as the FSB points out, just 6 per cent of small companies have experienced online fraud so it's important to get things into perspective. If the research and news story have discouraged traders from venturing online, then they will have performed a dis-service.
Chris Barling
Actinic
Posted by Chris Barling | 16 Aug 2007
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