Small businesses are being warned about identity theft and how they store and dispose of personal data.

With an increasing number of reported customer identification thefts (60,000 this year alone, according to CIFAS - the Credit Industry Fraud Avoidance System), the National Fraud Authority (NFA) has issued a publication to help businesses minimise the risk posed to their customers.

The publication follows the outcome of an NFA-commissioned survey, which showed that some 40% of businesses have no clear policy in place to deal with data-sensitive documents containing customers' addresses, telephone numbers and other such details.

Further research from the NFA revealed that only ‘22% of small businesses are taking further steps to protect their financial interests despite around 7 in 10 reporting they feel more at risk of fraud as a result of the recession'.

In addition to this, 26% of small businesses do not regularly check bank and credit card statements, 28% do not cross-check invoices against goods/services supplied and only 47% encrypt their wireless networks.

With cases of fraud on the rise, these findings suggest that further steps need to be taken in order to prevent small business fraud. The NFA has pledged it will continue to raise awareness of the dangers of fraud in the UK, and will hope that small businesses heed its advice and ensure business is conducted safely.