More than 57% of small business owners have experienced fraud, compounding pressures from inflation, shrinking margins, and economic volatility, according to a new survey from Abrigo, a financial risk and lending solutions provider.
The findings come as financial fraud continues to rise, with more than $12.5 billion lost in 2024, a 25% increase over the previous year. AI-driven attacks, along with credit card, wire transfer, peer-to-peer payment, and check fraud, were among the top threats cited by survey respondents.
The online survey, conducted in April 2025 by Propeller Insights, gathered responses from 1,009 U.S. consumers. Among small business owners (SBOs), 85% expressed concern about AI-based fraud, and 40% reported having personally experienced it.
Despite these concerns, 69% of SBOs expressed a positive attitude toward the use of AI-powered fraud protection. Half reported that their financial institutions are already using such tools. Still, only 16% said they feel extremely prepared to deal with fraud.
Check fraud also remains a concern, with 37% of SBOs reporting that stolen checks have been taken from their mailboxes. While 83% of business owners reported being able to fully recover from fraud, 74% stated that being defrauded would lead them to reduce their banking engagement.
SBOs reported using multi-factor authentication (44%), transaction notifications (39%), and credit bureau fraud alerts (39%) as methods to help guard against fraud.
Abrigo CEO Jay Blandford said small businesses are facing increasingly sophisticated fraud schemes while managing economic pressures. He emphasized the role of community financial institutions as the front line in fraud defense.
