Cyber fraud threatens small businesses in Europe – One in Four Small Businesses in Europe at Risk of Closure Due to Cyber Fraud

New research from Mastercard of more than 1,800 small business owners in Europe uncovers a worrying trend: 1 in 4 (25%) entrepreneurs have been targeted by fraudsters, with the highest rates reported in Ireland (38%), Denmark (35%), and France (29%). 

With digital fraud becoming more sophisticated, small business owners and entrepreneurs in particular face growing challenges in protecting their businesses from cyber threats. Europe’s 23 million smaller businesses represent 99% of all businesses and provide around three-quarters of all jobs.  

Cybersecurity knowledge gap leaves businesses vulnerable 

Despite the rising threats, 1 in 2 (47%) business owners are unsure how to protect themselves from cyberattacks. The need for education is urgent, with 67% saying they must improve their understanding of cybersecurity—a sentiment strongest in Ireland (83%), Poland (82%), and Portugal (79%). 

Findings show that 11% of entrepreneurs say they have lost money to scams, while 9% have lost customers after being targeted by scammers. The impact extends beyond direct victims; 42% of business owners have not been personally targeted but know another entrepreneur.  

Fear of fraud preventing growth 

European entrepreneurs are increasingly cautious about expanding their businesses due to fraud concerns. Nearly half (49%) say the risk of fraud makes them hesitant to grow—a sentiment especially strong in Slovakia (80%), Poland (79%), and Spain (68%). Furthermore, 1 in 4 (25%) fear that if their business were attacked, they would have to shut down. 

Among generations, younger entrepreneurs are the most concerned: 36% of Gen Z entrepreneurs worry daily about falling victim to cybercrime, compared to 27% of Millennials and 25% of Baby Boomers. 61% of Gen Z say fraud concerns are a major barrier to scaling their businesses. 

“With digital fraud and cyber threats on the rise, business owners must take proactive steps to safeguard their operations,” said Michele Centemero, EVP Services Europe at Mastercard. “Our study highlights a critical need for better education, stronger security measures, and greater industry collaboration to help businesses protect themselves. At Mastercard, we recognize that small businesses are the backbone of Europe’s economy, and their resilience is essential for growth and innovation.” 

Tulsi Narayan, EVP Commercial and New Payment Flows Europe at Mastercard says: “Cyber threats are one of the biggest challenges facing small businesses today. With one in four European SMEs fearing that a cyberattack could force them to close, it’s clear that stronger security measures are essential. At Mastercard, we are committed to empowering small businesses with the tools and protection they need to navigate an increasingly digital and complex threat landscape.” 

As the Mastercard European Cyber Resilience Centre (ECRC) marks its first anniversary, the past year has highlighted the crucial role of collaboration and education in the fight against cybercrime. 

Launched in May 2024 in Waterloo, Belgium to enhance cyber resilience across the region,, the ECRC has become a cornerstone of Europe´s cybersecurity landscape, providing essential support to institutions, businesses, and consumers. Initially composed of 20 teams, it now boasts over 30 specialized groups, including intelligence experts, technical recovery specialists, and crisis managers, all working together to protect the digital economy.  

In close partnership with national cyber intelligence centers, law enforcement agencies, industry bodies, and central banks across Europe—including ECRB, Europol, FS-ISAC, INTERPOL, NBB, and the UK’s NCA and NCSC—the ECRC is advancing best practices in cybercrime prevention and response, helping institutions and individuals build greater resilience against evolving security threats. 

As cybercriminals continue to evolve, Mastercard remains committed supporting SMEs with cutting-edge security solutions and educational initiatives so small business owners can focus on what they do best — serving their customers. For example, Mastercard customized flagship RiskRecon vulnerability scanner for small businesses through My Cyber Risk, enabling them to pinpoint, prioritize and act on cybersecurity threats to their online environment.  ID Theft Protection, provides monitoring, alerts and resolution services to help protect against identity theft. The Mastercard Trust Center is a platform that helps small business owners access research, resources and tools in collaboration. 

Mastercard is also bringing scale to cybersecurity through new partnerships. With CyberMonks and VikingCloud, Mastercard launched a marketplace for businesses of all sizes to easily find and seamlessly implement tailored cybersecurity and risk management solutions. 

_{Survey Methodology} 

_{The study was commissioned by Mastercard, with fieldwork conducted by independent research agency, Opinium. Between 16th December 2024 - 3rd January 2025, an online quantitative survey was carried out across 18 countries in Europe. It included:} 

_{The survey was of 1,830 SME business founders aged 18+ who founded companies with fewer than 250 employees} 

_{The full list of countries surveyed: Austria, Belgium, Czech Republic, Denmark, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland, UK}