The latest CPA Australia survey of 600 small businesses found that 28 per cent of respondents had suffered from fraud.
"For these fraud victims their chances of recovering their losses fully are, at best, 40 per cent," CPA Australia's business policy advisor, Judy Hartcher said.
The most common type of fraud reported was employee fraud, accounting for 10 per cent of total fraud. Seven per cent of fraud was through bank accounts, seven per cent through credit cards, while supplier fraud was four per cent.
Internet fraud was the largest area of growth because small business owners “have fewer defences for internet fraud. Quite often they don't even have fire walls," Ms Hartcher said.
Protecting bank accounts was a high priority for most business, with 83 per cent reconciling their accounts regularly and 75 per cent saying they had processes in place to ensure safety.
