14 DAY TRIAL // The Economic and Social Research Council has issued a warning stating that small and medium sized companies (SME) are the most likely candidates to compromise UK economy by not securing confidential data. The need to tighten data security is stringent if we take into consideration that 99.3% of all UK businesses are SMEs.
The issue of data security seems to be taken lightly by SMEs although in April ?317 million have been lost to fraud; a total in excess of ?700 million has been lost in the first half of the year. Just over half of Britain's annual turnover is generated by SMEs.
University of Cambridge's Tyler Moore had this to comment: "Information security is now a mainstream political issue, and no longer the province of technologists alone. In 1999 it became clear that even the latest and greatest technology will not solve all our problems if those who protect and maintain them are not sufficiently motivated. The issue is one of incentives."
According to Bruce Hallas from Marmalade Box (company that specializes in providing information risk management solutions) "security is about managing the risk from people, both known and unknown, interacting with your information and information systems. It is more about people management than technology."
The most afflicted businesses are banks and insurance companies; out of the ?705 million lost to fraud, a staggering ?636 million was supported by the above mentioned companies.
Who is to blame for all these loses? According to Simon Bevan from BDO Stoy Hayward, the finger should be pointed at managers and suppliers: "What we are essentially saying is that management are robbing you blind, suppliers are ripping you off left right and centre and regulators are breathing down your neck. As the recession deepens, regulatory pressures will increase and regulators will become more intrusive, so be prepared. That's a triple whammy for businesses in the UK."