Now, in a survey of more than 600 small business owners and executives, the Ponemon Institute has tried to put a number on the cost of credit card account fraud for those vulnerable targets, comparing the damage with the cost of physical theft by employees or burglars. The result: While identity theft takes less from businesses per incident than either robberies or crooked employees, it hits them often enough that it's an equally costly or even costlier problem.
According to Ponemon's study, the median account fraud incident costs a business $5,136. That's much less than the $9,913 the respondents attributed to the median cost of a burglary or $17,517, the cost they attributed to an employee theft case.
But take the frequency of those incidents into account, and the pain adds up. About 86% of businesses have suffered from account fraud, more than the 77% who have been robbed or the 63% whose employees have stolen from them. And among those victims, most businesses experience employee theft either once (32%) or zero times a year (41%). Robberies are less costly but more frequent: Most businesses report them either once (29%) or between two and five times a year (38%).
Account fraud is far more frequent: 45% of businesses have been digitally defrauded two to five times in the last year, and 38% have been defrauded more than five times.
"Some 2.8 million Americans now work permanently from home offices and a full 38 million (37 percent of the total U.S. workforce) telecommute at least once a month. For the most part, the mainstreaming of telecommuting and the arrival of the virtual or mobile office has been a positive development, both in terms of employee productivity and cost reduction. However, one of the challenges of the proliferating mobile workforce is for companies to ensure that their most-sensitive customer and corporate information is truly secure."