According to new research released today, on average, each of the 5.5 million SMBs in the UK lost almost £11,000 (£10,800) this year through fraud.With hackers, scammers, and unethical shoppers becoming increasingly sophisticated, smaller businesses are worryingly underprepared for attacks – with nine in ten senior c-suite execs concerned for their survival as a result.
Commissioned by Mollie, one of Europe’s fastest-growing financial service providers, the study found that over half (54%) of UK SMBs were the victims of online fraud in 2024.
Specifically, more than half (58%) dealt with phishing scams in the past 12 months, where scammers pretended to be trusted companies to steal their personal information through email. Additionally, 42% dealt with refund fraud, where customers manipulated refund policies to obtain reimbursements for products or services they were not entitled to.
Similarly, three in ten (30%) said they experienced attempts at account takeovers, where unauthorized parties tried to gain access to their online business accounts. Additionally, a quarter (26%) experienced chargebacks on completely legitimate transactions, and over two in ten (23%) faced carding attacks, where stolen cards were tested at checkout, leading to spikes in failed transactions.
In addition to the financial toll, online fraud is impacting the productivity of small businesses. Mollie’s research found that they spend an average of 15 days—or 120 hours—each year managing and mitigating fraud-related issues. This time commitment diverts resources from core business operations, further straining already limited budgets.
Richard Wivell, Marketing Manager at Nemesis Now, said: “”Experiencing gateway attacks was a costly and stressful ordeal for our business. We dealt with fake orders, refunded fraudulent payments, and worked overtime with developers to manage thousands of malicious requests.
Unfortunately, the lack of urgency from our previous provider forced us to take matters into our own hands working with our trusted web development agency to identify vulnerabilities and blocking attacks.”
Dave Smallwood, UK Managing Director of Mollie, said: “As the backbone of the UK economy, it’s crucial that UK SMBs –especially e-commerce ones– are equipped with practical solutions to manage their money and fight fraud effectively. Many small businesses lack the resources to cover a single fraudulent incident, and without support and action, we risk stifling business innovation and growth.
Fighting fraudulent activity is taking resources away from day-to-day business operations, and we need this to change. We need to provide businesses large and small with access to the support needed to safeguard against increasingly sophisticated threats so they can focus on the job at hand. “
Mollie is on a mission to make payments and money management effortless for every e-commerce business in the UK and Europe.
