How governments play an essential role in creating more secure SMBs
Small and medium-sized businesses (SMBs) are the backbone of the Asia Pacific economy, accounting for over 95 per cent of all businesses.¹ Despite their significant role, SMBs are highly susceptible to various forms of fraud, including phishing, pharming, and whaling, which dominate the fraud landscape in the region.² Governments have a vested interest in SMBs' success and play a crucial role in ensuring secure and fraud-free payments.
By implementing comprehensive strategies and maximising existing support structures, governments can significantly enhance the resilience of SMBs against fraud. Effective measures include targeted education programmes, robust partnerships with the private sector, and facilitating access to advanced security technologies. Through these initiatives, governments can empower SMBs to operate securely in an increasingly digital world.
Championing upskilling and education
Governments across Asia Pacific must ramp up investments in programmes aimed at boosting the digital proficiency and fraud awareness of SMBs. These programmes address the urgent need for SMB owners and their employees to stay informed about the latest fraud threats and preventive measures.
Regular workshops and seminars led by experts can educate SMB stakeholders on potential fraud threats and how to recognise and respond to suspicious activities, especially in online transactions. These sessions provide practical knowledge and real-world examples, helping SMBs develop a proactive approach to fraud prevention.
Offering courses that enhance the digital skills of SMB employees is another critical initiative. These courses should focus on safe online practices, understanding digital tools, and the importance of data privacy. By improving digital literacy, SMBs can better protect themselves against fraud.
An example of such an initiative is the SG Cyber Associates programme by the Cyber Security Agency of Singapore.³ This initiative aims to build a robust cybersecurity workforce by equipping individuals with the necessary skills and knowledge to tackle threats. Through a combination of classroom training and hands-on projects, participants gain practical experience in areas like incident response, digital forensics, and vulnerability assessment.
Building secure foundations with public-private partnerships
Governments need to build stronger public-private partnerships to strengthen the financial security infrastructure for SMBs. The financial ecosystem provides industry and technical expertise, while governments bring the commitment to build more secure digital economies. Together, they create a robust defence against emerging threats, ensuring a safer environment for SMBs to thrive.
An example of such collaboration is the use of cutting-edge technologies to fight fraud. In 2023, the Monetary Authority of Singapore began working with financial institutions and technology organisations to explore the risks and opportunities of generative artificial intelligence (GenAI) in the financial sector.⁴ One of the key areas of the initiative, called Project MindForge, is to facilitate GenAI innovation to enhance risk management. This demonstrates how public and private sectors can join forces to leverage advanced technologies and strengthen the financial security landscape for SMBs.
Helping SMBs navigate the complex landscape of financial regulations is another crucial aspect of these partnerships. Joint efforts with financial institutions can guide compliance with national and international financial regulations, maintaining the integrity of SMB operations and avoiding legal pitfalls. This support is particularly valuable for SMBs that may lack the resources or expertise to understand and implement regulatory requirements on their own. By offering tailored advice and resources, governments and financial institutions can help SMBs stay compliant, mitigate risks, and focus on their core business activities.
Lowering the barriers to technology adoption
Governments are pivotal in ensuring that SMBs have access to the latest digital payment systems and data protection technologies. Hence, in addition to educating SMBs on digital tools and practices that combat fraud, governments can make it more feasible for SMBs to invest in security solutions by providing financial subsidies and incentives.
These solutions help detect and prevent fraudulent transactions in real time, offering SMBs a crucial first line of defence against potential fraud and ensuring safer transaction processes. An example of such a technology is Visa Token Service, which provides robust security measures for digital payments⁵. Visa tokens secure payment credentials, enabling safer transactions and reducing fraud.
These tools exemplify how advanced security technologies can be integrated into SMB operations to enhance payment security significantly.
Fraud like phishing, pharming, and whaling leverage SMBs’ vulnerabilities to gain access to confidential information like contact details and login credentials. That is why governments play a crucial role in securing SMBs by prioritising security upskilling, forming stronger partnerships with the private sector, and facilitating SMB access to advanced security technologies. Solutions like Visa Advanced Authorisation and Visa Risk Manager are available to the financial ecosystem and can help mitigate fraud for SMBs proactively.⁶ Additionally, by funding research and development in cybersecurity technologies tailored for SMBs and supporting startups that create affordable security solutions, governments can make advanced protection tools more accessible. This approach not only mitigates current threats but also ensures SMBs are well-prepared for future challenges in the evolving fraud landscape.
¹ Visa, How payments and technology open doors for small businesses in Asia Pacific, 2023.
² Visa, Enhancing Small and Medium-Sized Business (SMB) Financial Security and Fraud Prevention, 2024.
³ Cyber Security Agency of Singapore, New cyber talent programme to provide foundational and targeted cybersecurity training for non-cybersecurity professionals, 2023
⁴ The Monetary Authority of Singapore, Project MindForge, 2024.
⁵ Visa, Visa Token Service, accessed May 2024.
⁶ Visa, Visa Advanced Authorisation and Visa Risk Manager, accessed May 2024.