Small Business Owners Most Concerned with Payment Fraud

Small business owners are increasingly concerned about various forms of fraud, according to a recent survey. But payment fraud is their top concern.

KeyBank’s 2024 Small Business Survey asked nearly 2,000 small business owners about their fraud concerns. Of those respondents, 44 percent said that their biggest concern is payment fraud, unauthorized transactions or fund transfers. However, this is far from the only concern for today’s small businesses; 37 percent said they are most worried about identify theft, 28 percent are most concerned with malware and ransomware attacks, and 27 are more concerned about phishing and email scams.

Mike Walters, President of Business Banking at KeyBank, said in a release, “With the introduction of new technology over the last several years, small businesses are some of the many that have fallen victim to fraudulent activity. It’s important for owners to have a plan in place and KeyBank is proud to provide resources that can help their business run better.”

All of these forms of fraud are unfortunately prevalent for small businesses. Evolving forms of technology have made it easier than ever for hackers and scammers to target businesses. And independent entrepreneurs often don’t have the same resources as larger firms to fight against these threats.

In fact, the Association of Certified Fraud Examiners found that small businesses consistently rank highest in fraud frequency. Between 2002 and 2022, ACFE found that about 28 percent of small businesses experience some form of fraud each year, with larger organizations experiencing fraud at rates between 22 and 26 percent.

While there are many forms of fraud that small business owners may face, it’s important to dedicate resources toward fighting all of these potential threats. Even without tons of extra capital, it is often worthwhile for small businesses to invest in training and put systems in place to prevent payment fraud, phishing, identity theft, and more, since these issues are prevalent and can cause major harm to small businesses.

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