Small businesses face virus and spam attacks
An onslaught of unsolicited faxes, e-mails and computer viruses is hitting the pockets of small businesses across the UK, according to research by Bank of Scotland Business Banking.
The Bank's UK-wide small business survey reveals that computer viruses have brought a significant financial impact to almost a quarter of small businesses (24 per cent).
With an increasing prevalence of computer viruses, the risk to small businesses' computer systems is potentially a very costly one, ranging from minor data losses to major business disruption. Whilst many larger businesses use protective software or firewalls to protect their computers, smaller businesses may not be as well prepared.
The vast majority (81 per cent) of the small businesses which are affected by computer viruses believe they suffer an annual loss of up to £500. Nevertheless, one in 20 businesses (five per cent) face an annual bill of up to £10,000 while two unlucky businesses surveyed suffer from crippling costs of over £12,500 every year. Such outlays can pose a serious threat to the survival of a small business.
The threat of attack from computer viruses is felt most in Scotland where a third (34 per cent) of businesses view it as a financial risk and least in Newcastle where it is an issue for one in six (17 per cent) small businesses.
Spam
Although a much less serious financial strain on small businesses, the survey also reveals that unsolicited 'spam' e-mails also represent a material cost. Over one in five (22 per cent) of small businesses claim junk e-mails cost their business over £500 per annum. For one in twenty businesses (five per cent) the cost is estimated to be up to £12,500 per annum.
This figure is largely the result of the administrative burden created in handling the e-mails and the cost of software to filter unwanted e-mails.
Faxes
Just as unsolicited e-mails can be automated to target hundreds or even thousands of businesses, multiple faxes have long been used for advertising, marketing and other purposes. Whilst almost a quarter (24 per cent) of small businesses believe the cost of receiving and handling junk faxes is an issue, the annual cost is estimated to be less than £500 through additional paper and administration. Nevertheless, one small business reported a cost of £5,000 through its office network.
Perhaps inevitably, the larger the business, the greater the impact and prevalence. While just 17 per cent of sole traders see junk faxes as an issue, over a third (35 per cent) of companies with more than 10 staff saw it as a material issue.
Blight of the modern business age
Kevin Gillett, Head of Bank of Scotland Business Banking, said: "Computer viruses are a blight of the modern business age. Protecting systems with advanced firewalls may seem expensive to many small businesses but, compared to potentially crippling costs and disruption losing important files can have, it's an option which should be carefully considered.