Small businesses are increasingly concerned about payment fraud, according to a recent survey conducted by regional bank KeyBank. The survey, which included nearly 2,000 small-to-medium size businesses with annual revenue of less than $10 million, revealed that payment fraud is a top concern among participants.
Specifically, 44% of respondents expressed worry about unauthorized transactions or unauthorized electronic fund transfers, while 37% were concerned about identity theft. Additionally, 28% cited malware and ransomware attacks as their biggest concern, and 27% were worried about phishing and email scams.
Mike Walters, President of Business Banking at KeyBank, highlighted the impact of new technology on the rise of fraudulent activities targeting small businesses. He emphasized the importance of business owners having a robust plan in place to combat fraud effectively.
Aside from payment fraud, the survey identified the top three anticipated economic challenges for small businesses in the coming months. These challenges include high overhead costs, delayed payments from clients or customers, and fluctuating revenue. Despite these challenges, the survey found that 65% of small business owners feel confident in their ability to fund their operating expenses for one month using their cash reserves in case of an unexpected need.
Walters commended small business owners for their resilience in the face of financial uncertainty. He noted that their confidence remains strong, enabling them to navigate through economic challenges such as inflation and stay on course for continued growth.
