Small and mid-sized businesses in the U.S. and Canada wrongly believe they are not a target of fraud, despite evidence of the mounting cost of payment crime to independent retailers, according to new research from Emailage, the global leader in online fraud prevention and email risk assessment.
The survey of 1,000 SMB leaders and owners from across North America found that nearly half (48.4%) of small-to-mid-sized businesses (SMBs) in the U.S. and Canada believe they are “not big enough” to be targeted by fraudsters. More than a third (38%) still do not rank fraud as a top business concern.
In the last 12 months, companies with fewer than 49 employees were hit particularly hard as they reported $37,258.14 lost to fraud. Meanwhile, fraud losses reported by larger businesses in the U.S. averaged $26,640.40 and $14,673 in Canada.
Speaking about the findings, Rei Carvalho, CEO of Emailage, explained: “This research shows a lack of concern among many SMB owners when it comes to fraud prevention. These businesses work with considerably smaller profit margins. Therefore, losing even a fraction of their revenue could have major repercussions for their businesses, impacting long-term growth and business development.”
With the consequences of inaction in mind, the Emailage report provides in-depth guidance to SMBs on how to protect their business and their profit margins from fraudulent activity. This includes advice on how to choose the right fraud prevention solution and the growing trend of using email addresses as the basis for transactional risk assessment and customer identity validation in order to prevent fraud.
EmailRisk Score from Emailage is a solution capable of automating the email verification process and ensuring optimum performance. Rather than relying on static data points such as an individual’s name and address to detect fraudulent activity, the Emailage solution uses the email address, along with 120 other data points, in real-time to identify whether a transaction is genuine or not.
Rei concluded: “Harnessing these technological solutions can be an ideal way for small and mid-sized businesses to protect themselves and their customers from the damaging effects of fraud, all while saving time, money and labor. With such systems in place, SMBs can be confident that they are able to provide a great experience for their customers, and have the security they need to grow and thrive into the future.”
To read the full report, visit: Size doesn’t matter: Why fraud prevention is a strategic investment for SMBs
To find out more about EmailRisk Score or to request a demo, visit www.emailage.com.