Risky business
SMEs are often seen as an easy target for criminals, so a new initiative from the FSB is to be welcomed
When as an individual you are a victim of crime - having your wallet stolen or credit card cloned, for example - you automatically expect your bank and the police to help you out. You expect not to pay the charges and to receive all of your money back, and quite rightly so.
When the crime involves someone actually conning you out of your money, while there may be an embarrassment factor, as an individual you still expect to be able to get your money back.
Under the 2002 Enterprise Act the Office of Fair Trading (OFT) can issue Stop Now Orders to fraudsters who try to con individuals. However, while the effects can be just as devastating, there is no protection to stop fraudsters from cheating small businesses.
CRN has written countless news articles regarding small firms, resellers and integrators being hit or targeted by scammers. Whether VAT or card-not-present fraud, small businesses are often seen as an easy target for the criminal element. In fact, the number of cases of fraud committed last year was actually up by 14 per cent compared with 2003.
According to KPMG's latest Fraud Barometer, the number of fraud cases reported to UK courts over the past five years has grown almost three-fold. In all, 174 fraud cases came to court last year, with a total value of just under £330m, a smallish drop from the total of £374.5m recorded in 2003.
The Federation of Small Business (FSB) is now arguing that small-business owners are as vulnerable to scams as any other individual; that they often lack specialist knowledge and rarely have time to pore over the details of all of their deals.
The FSB is asking the government to include small businesses under the Enterprise Act. This could have a huge impact on IT resellers, which, because of the nature of what they sell, are targeted more often than SMEs in other industries.
Appropriately, February is Scam Month at the OFT, which is aiming to heighten awareness of fraudulent activity. Anything that aims to prevent resellers from becoming victims of crime should get the entire channel's support.