One of the unfortunate realities of owning a small business is that they are more susceptible to fraud, as many entrepreneurs don't have the time or resources to constantly monitor their financials. With small business lending on the rise, entrepreneurs should be especially diligent with their financial accounts so that their organizations may continue to grow.
Fortunately, according to new data from the National Retail Federation and First Data, the majority of small business owners are confident their accounts are impervious to fraud. Nearly two-thirds of respondents (64 percent) indicated that they believe they are not vulnerable to credit or debit card debt.
However, many small business owners were not sure what they would be held liable for if a breach did occur – especially if it involved their customers.
"The finding we found most intriguing was the confusion around the potential liabilities in the event of a data breach," said Mark Herrington, senior vice president of First Data. "We're confident that continued education in the payments industry will raise awareness of the importance of annual self-assessments and the right mix of data security and fraud prevention tools."
According to the Association of Certified Fraud Examiners, 30 percent of all fraud occurs with small businesses.