A survey conducted by regional bank KeyBank has shown that small businesses are increasingly concerned about payment fraud. The survey targeted nearly 2,000 small-to-medium sized businesses with an annual revenue of less than $10 million. Among the participants, unauthorized transactions or electric fund transfers were the top concern for 44%, followed by identity theft at 37%, malware and ransomware attacks at 28%, and phishing and email scams at 27%.
Mike Walters, President of Business Banking at KeyBank, emphasized the need for small business owners to be prepared to combat fraudulent activities, especially in light of new technological advancements. He commended small business owners for their resilience in facing financial uncertainties, noting that their strong confidence enables them to navigate challenges such as inflation and continue on the path to economic growth.
Despite these concerns, the survey also revealed that high overhead costs, delays in payments from clients, and fluctuating revenue are anticipated economic challenges in the coming months. Nevertheless, 65% of small business owners expressed confidence in their ability to cover operating expenses for one month using their cash reserves in case of an unexpected need.