Recent findings reveal that approximately 50% of small and medium-sized enterprises (SMEs) have endured scams in the past year, with the average financial toll amounting to $5,000 per incident.
This alarming trend underscores a troubling deficiency in the scam defense strategies currently employed by these businesses.
According to a survey conducted by BNZ, nearly half of the SMEs surveyed acknowledged a lack of prioritization regarding scam education and cyber training for their personnel. A staggering 64% reported an increase in scam activity over the last year, yet 45% did not deem cyber education as a paramount concern.
Margaret Miller, the head of fraud operations at BNZ, emphasized the significance of a dual-layered defense: While technology is an essential safeguard, an informed workforce is equally vital.
When employees are equipped to recognize the warning signs, they transform into the organization’s most formidable defense against scams and fraudulent acts.
She cautioned that scammers are adept at taking advantage of existing security vulnerabilities, noting that a simple click on a malicious email link can result in security breaches up to 50% of the time.
“Business proprietors are acutely aware of the risks, yet often find themselves time-constrained and managing a plethora of competing priorities. The stark reality is that scammers are refining their techniques to become persistently more sophisticated.”
Interestingly, 53% of proprietors considered themselves “prepared” for potential scams, a figure that contradicts the data showing that nearly 49% of this group had engaged with a scam attempt.
“Scammers recognize that breaching technological barriers poses challenges; therefore, they frequently bypass technology altogether, targeting the individual at the keyboard—the hurried employee managing invoices or attending to phone inquiries,” Miller elaborated.
While the average loss for businesses stands at $5,000, the ramifications can extend beyond mere finances. Among SMEs that fell victim to online scams, 21% experienced financial losses related to their business, while 26% suffered personal financial setbacks, and 30% faced data breaches.
Miller noted, “Scammers are not solely after business funds. Our data indicates they frequently succeed in compromising both personal finances and business data, even in instances where they do not directly extract money from corporate accounts.”
Surge in Cold Calls and Fraudulent Invoices
Furthermore, the survey data illustrated that SMEs are increasingly susceptible to traditional deception methods rather than sophisticated technological intrusions.
Ransomware attacks targeted a mere 2% of businesses, whereas classic deceit and social engineering scams were significantly more widespread:
- 27% of businesses received cold calls soliciting sensitive company information
- 17% encountered impersonation attempts from individuals masquerading as bank representatives
- 10% faced invoice scams featuring altered bank details
“Scammers exploit our tendency to act impulsively when we are pressed for time or distracted,” Miller remarked. She encouraged businesses to adopt available security measures, including two-step authentication for logins and requiring dual approvals for any financial transactions.
Additionally, she urged all entrepreneurs to leverage free resources for enhancing their teams’ cybersecurity acumen, such as the Own Your Online platform provided by the National Cyber Security Centre and tailored scam information accessible on the BNZ website.
“These efforts represent some of the most effective strategies to safeguard your business from financial adversities,” she concluded.
Source link: Rnz.co.nz.
