I remember years ago a friend in computers telling me “Absolutely everything is going to move on to the internet”.
You’ve got to hand it to him, he was spot on. We’re now reading our news online, doing our shopping online, researching our projects, and sending our information online. Many are even finding a partner - online!
However, where the consumers, the business and the money go, the criminals are sure to follow.
If you are one of the 4.25 million self-employed people in the UK, or a small businessperson with a few employees, then any attack on your business has an impact on your personal finances.
This can be as destructive as any loss from badly invested funds in your pension, an under-performing investment, or low interest rates on your savings.
There have been many reports in recent months showing the ways in which fraudsters are targeting people who have increased access to their pension savings.
But let’s also take a look at how online fraudsters can target your actual business, if you are self-employed or a ‘micro-employer’ with a small number of employees.
It has been announced this month that over £2 million was lost by businesses in Northern Ireland to online crime last year.
Figures from Get Safe Online and Action Fraud show 247 cases were reported, with total losses amounting to £2,152,343 between March 2015 and March this year.
And these are only the reported cases. In fact, they could be just the tip of the iceberg (the PSNI’s Cyber Crime Centre believes there are many more businesses who choose not to report online crime to the police).
It’s a crime category that’s on a steep rise, with levels nationally up 22 per cent on the previous year.
We hear a lot about crime over the phone against the individual consumer, with terms such as ‘phishing’ (attempts to obtain your bank details) and ‘identity theft’ now part of the mainstream vocabulary.
But if you are self-employed or running a small business, you might like to hear a little more about the most common scams likely to affect you via your business, and to know that, if you’ve been affected, you are not alone.
One of the main problems is officially known as ‘business email compromise’. This is where a fraudster will try to get you to change a direct debit or standing order by pretending to be from the organisation you make the payments to. The 30 cases reported in Northern Ireland in the last year resulted in losses of £768,115 to the businesses that were hit.
Another common concern, which is much more in the news, is the problem of hackers breaking into your system through your internet connection. They can also access email or social media accounts to obtain private information. There’s no breakout figure for Northern Ireland on this one, but in the UK as a whole, there were 1,314 reported cases of hacking in the past year.
If you are a small employer, the threat can also come from within your business. Action Fraud reminds business owners that “Corporate employee fraud” is where employees misuse company cash for personal benefit. The 15 cases recorded in 2015-16 cost businesses in Northern Ireland nearly a quarter of a million pounds (£242,002).
If you are a retailer, you will be dealing with payments much more than other types of business, which throws you open to a whole raft of fraud types specific to retail.
Reports of retail frauds in the UK have risen by 71 per cent from 3,559 cases reported in 2014-15, to 8,163 cases last year. Specifically, Northern Ireland saw 22 reported cases, making this one of the most reported types of online crime.
Further information and advice on attacks on your business can be obtained from the Get Safe Online website.
As was mentioned, and quite apart from threats to your business, you must also consider your personal pension, and the growing threat from fraudsters targeting your pension savings.
If you are thinking of drawing down or reinvesting part of your pension savings, taking financial advice from a qualified financial adviser can significantly reduce your chances of falling victim to pension fraud. It’s probably better done face to face, though - as opposed to online!
:: Michael Kennedy is an independent financial adviser and pensions specialist, and can be contacted on 028 71886005
