SMBs lose £4,000 annually to fraud, finds Visa

Recent report from Visa uncovers the scale of loss to fraud among small and medium-sized businesses 

Small and medium-sized businesses (SMBs) in the UK are losing an average of £4,000 annually to fraud, according to new research by Visa. The findings reveal that over 40% of UK SMBs have been targeted by fraudsters, shedding light on the financial strain and operational risks faced by these businesses. 

The rising threat of fraud 

Visa’s research identified the most common forms of fraud affecting SMBs: invoice fraud, phishing scams, and bank account hacks.  

Fraud’s impact extends beyond finances, with nearly 30% of business decision-makers reporting reduced confidence and 20% acknowledging its toll on their mental health. Additionally, 22% noted that fraud incidents had affected their personal finances. 

Mandy Lamb, managing director of Visa UK & Ireland, said, “Small businesses should not be held back by fraud. We already invest heavily in technology to safeguard small businesses – in effect levelling the playing field between small and big businesses as they trade online. 

“Customers should feel safe in the knowledge that when shopping at businesses big or small, paying securely with Visa can help protect them against fraudsters. If things go wrong, Visa is there to help put things right and work with customers to get their money back.” 

Consumer concerns amplify the problem 

Fraud not only undermines businesses but also dents consumer trust. Visa found that 48% of shoppers prioritise transaction security when choosing where to shop, second only to price.  

This heightened concern impacts consumer spending after a fraud incident: 91.2% of victims report spending less, while 6.4% avoid making purchases entirely. More broadly, average spending drops by almost half when a business has been affected by fraud. 

Visa’s practical toolkit  

As SMBs constitute 99.9% of the UK business landscape, protecting them against fraud is essential to the broader economy.

To combat fraud and support SMBs, Visa has launched a digital fraud prevention toolkit. This initiative offers practical guidance to help businesses safeguard their operations and enhance customer trust. Visa’s ongoing investment in anti-fraud technologies, including its AI-driven RTP Protect, has already prevented an estimated £30 billion in global fraud in the past year. 

Visa’s £8 billion global investment in fraud prevention over the last five years demonstrates its commitment to safeguarding businesses and consumers alike. 

Image: Canva

Josie Geistfeld Josie is an editor for Claims Media. She welcomes feedback, comments, and opinion at josie.geistfeld@barkerbrooks.co.uk