Cyber crime 'costs small companies £800m a year Over the past year, 41pc of the group's members have been a victim of cyber crime, often through frauds carried out by a customer or client, or so-called "card not present" situations (when purchases are made online, over the phone or by mail order). One in five FSB members said they had taken no steps to protect themselves from cyber crime. Mike Cherry, FSB chairman, said: "Cyber crime poses a growing threat for small firms and it isn't something that should be ignored. The cost of crime can act as a barrier to growth. For example, many businesses will not embrace new technology as they fear the repercussions and do not believe they will get adequate protection. While we want to see clear action from the Government and the wider public sector, there are clear actions that businesses can take to help themselves. The FSB issued 10 tips to help businesses protect themselves, including a combination of standard security protection steps (e.g. putting up a firewall and using antivirus and anti-spam software); carrying out regular security updates on all software and devices; and ensuring there is a resilient IT system and email password policy. The Government has urged small companies to spend more on security to address the rise in cyber crime and meet the terms of a tough EU directive. The Data Protection Bill will force companies to tell regulators every time they suffer a data breach. The Government is offering modest help to small and medium-sized businesses to recruit security consultants to tighten defences.