About a third of US SMEs accept crypto payments for their goods and services, according to a survey commissioned by HSB. However, there are several risks to consider, especially in terms of cyber fraud and cyber-attacks. Especially smaller businesses, those starting out, can’t afford to be cheated.
17 January, 2020 | AtoZ Markets – US crypto companies have continued to foster greater cryptocurrency adoption, especially in the retail market. A recent survey revealed that around 36 percent of US-based small and medium-sized enterprises (SMEs) now accept crypto payments for goods and services. Outside the fact that these businesses accept digital payments, more than half of them also buy digital currencies as part of their operations.
Newer Companies Are More Crypto-Friendly
This survey conducted also hinted that newer firms are twice as likely to accept payments in cryptocurrency and digital credit. Besides, the study showed that while one-third of SMEs were crypto-friendly, 59 percent of these businesses bought digital currency for their use.
Newer US SMEs are more likely to adopt cryptosystems than businesses with more than 20 years of activity. 47% of companies that adopt cryptosystems are less than five years old. Moreover, 21% of companies over 20 years accept cryptosystems.
The research was conducted on behalf of HSB by the international research company Zogby Analytics in October 2019. It showed that 36 percent of the 505 small and medium-sized enterprises surveyed already allow crypto payments in the US today.
Cyber Fraud and Cyber Attack hinders US SMEs
Now cryptocurrency has become very popular for security concerns. People view cryptocurrency as a reliable payment gateway beyond traditional fiat currencies. One of the leading cryptocurrency advisors, Ciphertrace reported that more than $480 million was breached in the first half of 2019.
According to Timothy Zeilman, Vice President of HSB, US SMEs accepting cryptocurrency is for faster payments and lower fees. However, SMEs will more expose the risk of cyber fraud and cyber-attacks because of this type of payment.
Small businesses become a target as they are easy to hack. Malware infections spread through simple phishing emails. Hackers could thus infiltrate a company’s data system and hijack the computing power to record and verify transactions in cryptocurrency. Zeilman noted:
“Cybercriminals follow money and fraud can be a serious problem. Several currency exchanges have been hacked or stolen and millions of dollars have lost. Small businesses, especially those that start out, cannot afford to be scammed.”
As a solution, he recommended that small business owners learn the whole technology before accepting cryptocurrency. They also have to ensure strong data security to protect themselves from cyber fraud and financial losses.
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