A recent survey by regional bank KeyBank revealed that small businesses are becoming increasingly concerned about payment fraud. The survey, which included nearly 2,000 small-to-medium size businesses with annual revenue of less than $10 million, found that the top concern among participants was payment fraud, with worries about unauthorized transactions, identity theft, malware and ransomware attacks, and phishing and email scams.
In addition to payment fraud, the survey also highlighted other economic challenges faced by small businesses in the coming months. The top three anticipated challenges include high overhead costs, delayed payments from clients or customers, and fluctuating revenue. Despite these challenges, 65% of small business owners expressed confidence in their ability to fund their operating expenses for one month using their cash reserves in case of unexpected needs.
Mike Walters, President of Business Banking at KeyBank, emphasized the importance of having a plan in place to combat fraud. He noted that while payment fraud is a major concern for small businesses, there are steps that can be taken to mitigate the risk. These include implementing strong security measures such as two-factor authentication and regularly monitoring financial accounts for suspicious activity.
Walters also encouraged small business owners to work closely with their bankers to develop a comprehensive financial plan that takes into account potential risks and challenges. By doing so, he said they can remain confident and continue on an upward trajectory towards economic growth.
