Small and midsize businesses expect their financial institutions to ensure their online accounts are secure, and some are willing to move their business elsewhere if fraud occurs, according to a new survey.
Seventy-four percent of small and midsize businesses have experienced electronic banking fraud while 52% said they have been hit in the past 12 months, the Business Banking Trust Study from Ponemon Institute found. Almost three-quarters of online fraud attacks resulted in the successful transfer of money and 61% reported fraud attacks resulted in lost funds.
More than 70% of participants said they hold their financial institutions primarily responsible for ensuring their online bank account is secure, but only 43% said their financial institutions took appropriate action to limit risky transactions. As a result of fraud, 40% said they were taking some or all of their business elsewhere.
"The Ponemon Institute's study clearly outlines the strategic impact that fraud has on a financial institution — lost profits and lost customers," Terry Austin, chief executive of Guardian Analytics, said in a news release. "Further, recent court cases have sided with businesses when it comes to fraud liability, emphasizing financial institutions need sound practices and security to protect customers from account takeover attacks."
The survey, which was released last week, also found that 54% of businesses now use mobile devices to access online banking, up from 23% in 2010. The proportion of businesses doing all business banking online more than doubled from 9% in 2010 to 20% in 2012.
The survey included responses collected in May from almost 1,000 owners and executives of small and midsize businesses in the U.S. It was commissioned by Guardian Analytics, which provides behavior-based fraud prevention products.