Cybercrime, the rising threat SMEs can’t afford to ignore

Cyber breaches are no longer rare headline events. They’re an everyday reality. While the news tends to highlight attacks on banks, retailers, and global giants, small and medium-sized businesses (SMEs) are just as, if not even more, exposed.

Why? Because SMEs are often easier targets.

And make no mistake, the impact of a cyberattack can be devastating, no matter the size of your business.

From organised crime gangs chasing quick profits, to hostile state-sponsored hackers, hacktivists, and even opportunistic “kids messing around,” the result is the same.

Disruption, spiralling costs, and reputational damage that can take years to repair.

“1 in 3 UK SMEs suffered some form of cyber incident in 2024”

Therefore, it’s hardly surprising our Cyber Security and Introduction to GDPR online training courses have become best sellers in recent months.

Ultimately, more and more business are recognising the threat of cybercrime, and are determined to stay one step ahead of the growing threat.

Who’s behind the cyber attacks?

Whose behind the cyber attacks? The truth is attribution is tricky. Knowing who’s behind any attack can be difficult to pin point. Many incidents are deliberately cloaked, leaving businesses guessing, who’s attacking them.

However, recent data paints a clear picture of the most active cyber threats. So, next, lets take a look:

1. Organised crime

81% of cyber incidents investigated by NCC Group were attributed to organised criminal gangs, compared to 13% linked to state-affiliated actors. UK Parliament Committees

“the average cyberattack costs a small to medium sized UK business in the region of £3,398 to £5,001”

2. State sponsorship

The NCSC reported that in 2022/23, 23% of cyber security incidents showed signs of state sponsorship (down from 34% the year before).

However, financially motivated attacks associated with organised crime, are on the rise. Industrial Cyber

3. Blurred lines

This blurring of lines between organised crime and state sponsored actors, makes the threat of cyber attacks even harder to navigate. Euronews, The Guardian

Take, for example, the 2024 attack on Synnovis, a UK healthcare provider, hit by a ransomware and a data theft campaign, from the Qilin gang. A financially motivated criminal organisation, believed to operate with, or at least, the tolerance of the Russian state.

4. Growth in cyber incidents

The growth in cyber incidents can be demonstrated by the fact, from September 2023 to August 2024, the NCSC handled 430 incidents. This number was up from 371 the year before.

Of these cyber attacks, 89 were nationally significant, and 12 classed as critical.

Why knowing who’s attacking you matters

Knowing who’s attacking you matters. Why? Because understanding the source of a cyber attack isn’t just academic. It shapes how you defend yourself:

State sponsored hackers

State sponsored hackers are stealthy, persistent, and often target intellectual property, supply chains, or critical infrastructure.

Organised crime groups

Organised crime groups are profit driven, using ransomware, extortion, and data theft.

SMEs are attractive to cyber criminals, because typically they have weaker defences.

Amateurs or “script kiddies”

Amateurs or “script kiddies” may seem harmless, but even low-level attacks through phishing or misconfigurations can escalate quickly.

Cyber Security online training course with certificates accredited by CPD & IIRSM

Only £35.00 for a single licence. Bulk discounts available, get in touch for a quote, or learn more

Hybrid or unattributed actors

Hybrid or unattributed actors complicate everything, slowing down responses, making insurance claims harder, and leaving you and your business exposed.

Cybercrime, the hard facts for SMEs

Cybercrime is rising fast, and SMEs are disproportionately vulnerable. Here’s the hard facts for SMEs:

1 in 3

1 in 3 UK SMEs suffered some form of cyber incident in 2024.

The average cost

The average cyberattack costs a small to medium sized UK business in the region of £3,398 to £5,001.

£3.4 billion

Collectively, UK SMEs lose £3.4 billion every year to hackers.

$10.5 trillion

Globally, cybercrime is projected to cost $10.5 trillion annually by 2025.

And even if hackers don’t get you, regulators might. Remember all the noise about GDPR compliance?

Well it might have quietened down, but it hasn’t gone away. In fact, it’s ramping up:

Fines of up to £17.5 million

UK businesses face fines of up to £17.5 million or 4% of their global turnover.

Introduction to GDPR online training course with CPD accredited certificates

Only £35.00 for a single licence. Bulk discounts available, get in touch for a quote, or learn more

No business is too small to notice

In 2024 alone, UK organisations paid more than £15.5 million in GDPR penalties. Fines ranged from £7,500 to £750,000, with many levied against firms that thought they were “too small to notice.”

The uncomfortable truth is this: it’s not a matter of if your business will face a cyber or data incident, but when.

And what many don’t realise is that regardless the size of the business, the financial implications can be huge.

Why SMEs are easy targets

Cyber attacks on large corporations may make the headlines, but as the stats above demonstrate SMEs are at high risk.

Whilst large businesses have big security budgets, dedicated IT teams, and compliance officers, SMEs are easy targets.

Many SMEs lack even the most basic cyber security knowledge, understanding and defences.

In fact:

32%

32% of UK SMEs have no cybersecurity protections in place.

52%

52% of SME employees have never received cybersecurity training.

38%

38% of small firms spend less than £100 a year on cyber protection.

Hackers know this, and exploit it ruthlessly.

A weak password, an unpatched system, or one careless click is all it takes.

When it comes to cybercrime, prevention is better than cure. It’s cheaper too.

Most breaches start with human error & the most effective defence is training your people!

Prevention is better than cure. It’s cheaper too

When it comes to cybercrime, prevention is better than cure. It’s cheaper too. Now here’s the silver lining, the most effective defence against cyber attacks is also one of the simplest. Training your people!

Cybersecurity isn’t just about firewalls and software. Most breaches start with human error: opening a dodgy attachment, reusing a weak password, or mishandling customer data. The right training drastically reduces those risks.

That’s where our Cyber Security online training course comes in. Tailored for SMEs, it equips your team with practical, jargon-free knowledge they can apply immediately. Each learner earns a certificate, demonstrating your business’s commitment to customers, partners, and regulators alike.

And because cyber risk is inseparable from data protection, we also offer our Introduction to GDPR eLearning course. This course ensures your staff handle personal data correctly, keeping you compliant and helping you avoid costly fines.

Together, these courses deliver an affordable, proactive first line of defence, and unlike cyber insurance, they reduce your risk before disaster strikes.

Take action before it’s too late

Hackers don’t wait until you’re ready. Equally don’t wait until you’ve been attacked. Take action now, before it’s too late.

To be blunt, if you don’t then you and your business are at an increasing risk of a cyber attack, and as a result the significant costs. It’s not just the commercial impact of disruption. Regulators don’t excuse “we didn’t know.” And customers don’t easily forgive a breach of trust.

Investing in training today could save your business thousands tomorrow, and in some cases, save your business altogether.

Find out more about our Cyber Security and GDPR online training courses, you can even take a free trial, but most importantly protect your data, your business, your customers, and ultimately your future.

About PRS eLearning

We’re passionate about helping people develop the knowledge and skills to create better futures.

Our eLearning hub hosts a comprehensive suite of online training courses with certificates, accredited by leading industry, and governing bodies, that provide vocational qualifications, recognised throughout the UK, Europe and further afield.

Engaging, enjoyable, and cost effective, our eLearning courses offer a premium learner experience at an affordable rate. Discounts are available for bulk purchases, charities, and other worthy causes. We even offer free trials.

Visit our eLearning hub to find out more, or get in touch to discuss your learning, development and training needs.

Intro.

As I’ve previously written, we’ve seen extreme reactions from business leaders since March, this year. Witnessing contradictions on the effects that Covid-19 has had on different companies. Some businesses are reporting record sales. Some are making redundancies. Either downsizing because they’re struggling, or they fear the worst.

Our take on the markets is driven from those within it, that we’ve engaged with. On the one hand, companies that have remained positive, got on the front foot, and recruited for their immediate business needs, and future development strategies. On the other hand, industry professionals that have been made redundant, or fear they will be in the future. And those who disagree with their company’s strategy for, or handling of, the pandemic.

So, to try and get a broader insight into the market, we conducted our own Covid-19 Business market research.

Covid-19 Business research

Our Covid-19 business research asked business leaders if they knew 12 months ago, what they know now, what would they do differently in their business? They had four choices to choose from.

In an attempt to gain insight, we deliberately didn’t push for information that could cause participants to not want to complete the survey. As a result, the possible answers were fairly open. However, we hoped that by not being overtly intrusive, we would achieve a clearer insight into the thoughts of different business leaders, across our network and markets.

So, in answer to our question:

If you knew 12 months ago, what you know now, what would you do differently in your business?”

Business leaders could choose from the following four answers:

1. Nothing
2. Battened down the hatches 
3. Increased sales activity
4. Reviewed your business model

So now for the results from our Covid-19 business research.

Regular business health checks keep your business fit & well, ready to capitalise on opportunities or adapt to market changes. Learn more 

Covid-19 Business Leader market research results

Covid-19 business survey analysis

I plan to expand on our Covid-19 survey analysis in a separate post (coming shortly). However, for now the take away points are, with hindsight the vast majority of leaders, that responded, would have done things differently. Only 8% said they would have done nothing differently.

29% would have increased sales activity. This response mirrors what we’ve also seen in terms of our client engagements, with a surge in demand for recruiting sales talent.

However, the majority of business leaders, 47%, would have reviewed their business model.

Conclusion

Apart from the fortunate or perhaps the naïve 8%, most business leaders (92%) would have done things differently. Covid-19 impacted us all quickly, and the woolly messaging throughout hasn’t helped.

Inevitable mistakes were made, such as the misunderstanding caused by the vague guidelines, around the terms “essential” & “necessary”. Leaving many business leaders asking themselves, is my business essential? Should I have stopped trading?

I think its fair to say early on the vast majority of leaders were, and some still are, wondering will my business survive coronavirus?

We’re now seeing a rise in Covid-19 cases, and as of last night new restrictive measurements being introduced. It’s clear we are all still going to be effected by Covid-19.

The definition of madness is doing the same thing over and over again, but expecting a different result…

Hindsight’s a wonderful thing. If you knew 12 months ago, what you know now, what would you have done differently in your business? If you haven’t addressed those changes yet, now is the time to do so.

Whether you’re looking to recruit new talent, or want strategic leadership support to review your business model, talk to us. Our network of interim managers, business consultants and recruitment services deliver positive results, improve organisational capabilities, performance and help you achieve your business goals.

We’re here to support you, your business, and help you survive and thrive in the current climate and beyond. Message us to arrange a confidential discussion, video meeting or socially distanced, safe face to face.

“Bank of England warns of sharpest recession on record”.

I tend to start my day with a quick check of the news headlines. This morning the BBC news website led with the above headline.

Now I know some people get to a point where they avoid the news. In short, to avoid the depressing doom and gloom. This headline could be one to skim past, if you wanted to avoid negativity, during what is already a challenging time. However, on reading the article, admittedly towards the end, there were hints of optimism.

Yes we may be about to have the sharpest recession. And yes, inevitably the unfortunate reality is some will suffer. But in reality, the sharpness of the predicted recession is hardly surprising. Given the fact so many business have stopped trading, some unnecessarily, since the Covid-19 lock down.

In my opinion, headlines like the BBC’s one this morning only lead to harming the economy. According to the article “the Bank stressed that the outlook for the economy was “unusually uncertain” at present and would depend on how households and businesses responded to the pandemic.” Headlines like this are more likely than not to scare businesses and consumers alike. As the Bank of England said, the outlook for the economy will depend on how “households and Businesses respond”.

The economy is likely to recover much more rapidly than from the global financial crisis

According to the article Bank governor Andrew Bailey said he expected any permanent damage from the pandemic to be “relatively small”. The economy was likely to recover “much more rapidly than the pull back from the global financial crisis,”

He also praised the action by the government to support workers and businesses through wage subsidies, loans and grants. Saying the success of these schemes and the Bank’s own stimulus meant there would be “limited scarring to the economy”.

The construction industry & the economy

The construction industry and the economy have long been linked. Considered an indicator of the strength or weakness of the economy. In short when construction activity slows, this usually indicates a slow economy.

A strong economy requires, and encourages, confidence. When the economy is weak, people lack the confidence to borrow money to buy property. Similarly, construction companies lack the investment to build large scale projects. In contrast, a strong economy breeds the confidence to invest, and the construction industry tends to boom during financial, economic optimism.

So, with current fears of a recession caused by the effect of the coronavirus outbreak, and the uncertainty of how consumers and businesses will respond to the new normal, what indicators are we seeing from the construction industry?

Construction industry demonstrates economic optimism

Posted three days ago, the construction index reported that the value of new construction contracts, signed in the UK, during the Covid-19 lock down appears to be booming.

According to the Builders’ Conference, who monitor new contract awards, £9.7bn of new contracts were signed during April 2020. This is despite much of the industry being furloughed. This represents new construction contracts signed in April, and was up 20% on March, when the lock down began. Furthermore, this represents an increase of over 50% on April 2019, which was £6.2bn.

Builders’ Conference chief executive Neil Edwards said that the £9.7bn total “offers just a glimmer of optimism for an upswing in workloads when the lock down finally comes to an end”.

So who are the winners of the construction industry boom.

17 companies signed more than £100M worth of contracts in April

17 construction companies signed more than £100M worth of contracts in April. Here we rank them from top to bottom, based on total contract value.

The construction index article listed, in full, 50 companies that had signed new construction contracts in April. The remainder had won new contracts valued, from top to bottom, between £93.7M – £27.1M.

Conclusion

I’m one of the worlds optimists. Preferring to look at the opportunities rather than lose track of my goals dwelling on problems. However, that’s not to say I’m deluded. So, to provide a balanced article, I’d like to point out that despite the indicators for April suggesting positivity, the likelihood is we’re in for a short shock when we return to the new normal. How long the lasts depends on the behaviors of businesses and consumers. But it can be seen in the slow decline of future tender opportunities. This is probably caused by current uncertainty, and if we return with positive behaviors it’s likely to be short lived.

As I suggested in a previous post, the chances are your business plan for the year isn’t going to plan. But what’s your strategy? Business leaders can wait and see what happens. Alternatively they can get on the front foot and be proactive in their approach to the new normal.

Whilst it maybe daunting, proactive behavior will help the economy, business and the UK as a whole, to pull out of this forced economic dip quicker. Previous recessions have shown that those business that enter a recession in good shape, can thrive during a downturn. And, as the current situation has proved also, for those companies that are forward thinking, innovative and pivot their business model, there’s always opportunities out there.

No one’s coming

As the business community waits to hear what the PM says on Sunday, and the plans to ease the lock down and return to the new normal, it reminds me of what I was once told by a business coach…

“No one is coming to rescue you”.

As a brief summary, the point being made is that business leaders need to take the necessary action to help themselves, and their business succeed. Don’t wait around expecting someone else to rescue you. Why? Because no one is coming.

So, whats your business strategy for the new normal?

Challenging times define business leaders. So, What’s your leadership style – proactive or procrastinator?

There’s no doubt about it, we’re about to enter a new normal that none of us foresaw. As a result, none of us had a plan to deal with it. However, it doesn’t have to be doom and gloom, as the figures above indicate.

With the right strategy and business model in place, you can capitalise on new opportunities. At the same time getting ahead of your competitors, that are waiting to see what happens.

Now is the time to take affirmative action.

If you want support getting your business ready to take advantage of the opportunities in the new normal, talk to us, Our network of professional Business Consultants and talent solutions services can help you and your business thrive.

The Job Retention & Furlough Scheme

The UK Governments Job Retention Scheme was, in short, introduced to support businesses and save jobs during the Coronavirus outbreak. As previously reported by BBC News, using figures from the British Chambers of Commerce, analysis suggests more than nine million workers will be furloughed. The British Chambers of Commerce figures also suggest nearly a fifth of small businesses plan to furlough all their staff. And 50% of companies are putting most of their staff on furlough.

Notably, the cost to the taxpayer is estimated at £30-£40 Billion, over three months.

As of today’s date, the governments coronavirus furlough scheme went live. HMRC chief executive Jim Harra told the BBC’s Today programme, employers had made 67,000 claims within the first 30 minutes.

Did you miss this change to the furlough scheme?

Juggling day to day business responsibilities, with trying to monitor all the coronavirus updates may mean you’re unaware of a recent amendment. So, did you miss this change to the furlough scheme?

As we all know, furloughed staff can’t work. However furloughed staff can now legally and ethically use furloughed time for training, without, in most cases, it impacting the 80% JRS claim*.

In fact training is not only allowed, government guidance actively encourages training furloughed staff.

Perhaps this change by the government is also to help protect the economy. Companies who take this opportunity to invest in training their furloughed staff, are far more likely to come out of this period stronger, than those who don’t.

Furloughed employees should be encouraged to undertake training. 

Furloughed employees can engage in training, as long as in undertaking the training the employee does not provide services to, or generate revenue for, or on behalf of their organisation or a linked or associated organisation.

Extracts from government guidance

Training furloughed staff

Often one of the issues around staff training, particularly for SMEs, is staff are too busy doing their day jobs. This applies to both employee training and leadership coaching.

However, for the first time, many employees of all levels have more time on their hands. Used to working each day, Monday to Friday and for some weekends, they’re suddenly in a situation where they can no longer work.

Previously, time spent training furloughed staff wasn’t covered by the scheme. i.e. like holidays, companies had to pay the salaries of employees for the time they spent training.

Following recent changes, the government has amended this. In most cases, the furlough payment of 80% will provide enough monies to cover training hours. Where time spent training attracts a minimum wage entitlement in excess of the furlough payment, employers will need to pay the additional wages.

In normal times, investing in staff training has multiple benefits. These benefits are multiplied in the current climate. So, I strongly advise taking advantage of the recent changes, use this opportunity to invest in staff training and development.

Those companies that do, will be far stronger than those that don’t, as we return to the new normal.

Benefits of training & development

The benefits of training and developing your company’s talent in normal times include the obvious of improving staff performance, and as a result business performance. It also includes improved employee engagement, productivity, staff retention and benefits your employer brand.

However, in the current Covid-19 period, where many staff and businesses are in a state of suspense, the benefits of employee training and development increases for both employer and employee. These additional benefits include:

• Bringing teams back together
• Stimulating  furloughed employee’s
• Mental health & well-being
• Maintaining & improving business skills
• Reassuring staff about the business & job security

Now’s the time to invest in your team & the future success of your business. 

However, we understand if you’re operating with a skeleton team, you or your leadership team, may not have the time to train your furloughed staff.

If you want professional support getting your team & business on the front foot get in touch.

“We’re in this together”

One of many recent phrases of the Covid-19 era, is “we’re in this together”.

First of all, I have to point out I’m neither a political or economical expert. I’m a small business owner who, like many, is trying to adapt to the impact of the coronavirus outbreak. And at the same time, support our clients anyway we can.

The government financial packages may not be perfect. But they’re an attempt to prevent an economic downturn. As the government have already admitted, they can’t guarantee the security of all businesses. Therefore, in my opinion, as business owners and senior leaders we all need to play our part. Ensuring our businesses are fit and healthy, ready to contribute to the economy, and not be a drain on it.

We’re in this together. We owe it to ourselves and our businesses. Our staff and the UK taxpayer, to make the most of the opportunities available during this challenging time. We’re trying to do our bit to help support the future success of our clients and country. As a result, we’re currently not charging any fees for introductions to our Coaching & Training partners. Better still we’ve negotiated subsidised discounts for strategic leadership support & employee training.

So, whats your business strategy? Are you going to be in the race to the top, or the race to the bottom, as we return to the new normal?

About our training partners

If you want to emerge from the lock down on the front foot, then strengthening your team now is an opportunity too good to miss.

Our training partners have modified existing training modules to be delivered by webcast, or as a group video session. This has the added benefit of bringing teams together, encouraging positive staff engagement. Training sessions include:

• Sales Training (entry to advanced level sessions available)
• Productivity & Time Management training
• Negotiation training
• Presentation training
• Business Planning
• Business Management
• Leadership coaching & mentoring…

Help is also available for those wanting bespoke packages created to deliver training on, for example, their products or services.

If you’d like help identifying and delivering training, understanding the small print to ensure you provide ethical and legal training that’s in the spirit of the JRS, get in touch now.

We’re currently not charging any fees for introductions to our Coaching & Training partners. Better still we’ve negotiated subsidised discounts for strategic leadership support & employee training.

Contact us about your talent attraction, acquisition and development needs, and lets discuss how our range of resource solutions can help you reach your business goals.

*Where training is undertaken by furloughed employees, at the request of their employer, they are entitled to be paid at least their appropriate national minimum wage for this time. In most cases, the furlough payment of 80% of an employee’s regular wage, up to the value of £2,500, will provide enough monies to cover these training hours. However, where the time spent training attracts a minimum wage entitlement in excess of the furlough payment, employers will need to pay the additional wages (see National Minimum Wage Section for more details).

GDPR | Intro

May the 25, 2018 the new GDPR or General Data Protection Regulation finally came into play, replacing previous Data Protection Laws. The new rules apply to all businesses operating within the EU. Including those based outside the area, who operate within it. The threat of heavy fines for non compliance, up to 4% of global turnover for serious infringements, combined with large numbers leaving their preparations to the last minute, left many scrambling to meet the GDPR deadline.

One of the main issues faced, leading up to May 25, was that we were only given GDPR Guidelines. A lot of which is open to interpretation.

Where there are grey areas, and a fear of heavy fines, there’s an opportunity to be exploited. Whether through poor planning, misinformation from the media or so say GDPR specialists, charging large fees based on fear who weren’t actually data protection experts, its apparent that many companies have made mistakes.

Possibly causing unnecessary damage, losing large parts of their marketing databases, when they didn’t actually need to. Others may have inadvertently broken the law, as the they scrambled to try and become compliant, but didn’t understand the requirements.

GDPR | Expert Advice

I don’t claim to be an expert on GDPR and this article isn’t giving you legal advice. I’m not qualified to do that. The GDPR Guidelines are exactly that – guidelines, and in my opinion we’ll only understand the full extent of the new laws as legal cases go through the courts. We may not have to wait that long. Tech giants Google, Facebook, WhatsApp and Instagram were issued with lawsuits over “forced consent”, on the very first day, by privacy campaign group Noyb.

Dr Kuan Hon, one of the leading Data Protection lawyers in the UK has spoken in the past about how GDPR has been used as a cash cow by some. Where there’s a lack of understanding and a fear of heavy fines, there’s an opportunity for people to exploit.

Perhaps one of the most damaging mistakes businesses have made is over the lack of understanding about “Consent”. Leading to a flood of “opt in” and “permission requests” in peoples inboxes.

“My biggest concern is that lots of companies, including SMEs, have forked out a lot of money for the wrong advice that may even harm them – as in the re-consenting case.”

Dr Kuan Hon

Dr Hon blames “bad advice being given by non-data protection experts, not helped by media misinformation about the GDPR, all at levels that seem unprecedented”, criticising companies for bombarding our inboxes with GDPR opt-in emails in recent weeks, claiming they were completely unnecessary. She continued: “The proliferation of unnecessary emails asking people to reconfirm their ‘consent’ to receive future communications: most of those have only resulted in organisations losing large parts of their marketing databases when they didn’t need to.”

GDPR – God Damn Permission Requests

Those of us, and lets be honest that’s most, who’ve received untold emails have become pretty annoyed by the constant requests to “stay in touch” and “opt in”. Leading to memes like the one at the top of this page appearing on social media.

The sheer volume of these messages are likely to have driven us to either ignore, even though these messages have said if you don’t opt in your data will be deleted, or to hit “unsubscribe”. I’m interested to see if I receive future messages from those who told me it was my last chance to confirm my consent or be deleted.

The irony is that these companies didn’t necessarily need to do this. Those that have sent requests may have caused themselves needless paperwork. Some may have actually sent out illegal messages. Toni Vitale, the head of regulation, data and information at the law firm Winckworth Sherwood, said:

“Businesses are not required to automatically ‘repaper’ or refresh all existing 1998 Act consents in preparation for the GDPR.”

Toni Vitale

Vitale continued “The first question to ask is: which of the six legal grounds under the GDPR should you rely on to process personal data? Consent is only one ground. The others are contract, legal obligation, vital interests, public interest and legitimate interests.”

“Even if you are relying on consent, that still does not mean you have to ask for consent again. Recital 171 of the GDPR makes clear you can continue to rely on any existing consent that was given in line with the GDPR requirements, and there’s no need to seek fresh consent. Just make sure that your consent met the GDPR standard and that consents are properly documented.”

GDPR | Consent isn’t always required to process data

In other words, if the business had consent to communicate with you before GDPR, that consent probably carries over. Even if it doesn’t, there are five other reasons a company can cite for continuing to process data. What’s more, Vitale said, if the business lacks the necessary consent to communicate with you, it probably lacks the consent even to email asking you to give it that consent.

“In many cases the sender will be breaching another set of regulations, the Privacy and Electronic Communications Regulations, which makes it an offence to email someone to ask them for consent to send them marketing by email.”

The lack of understanding around “consent” under GDPR has prompted the ICO to try to clarify some of the “myths” of GDPR. Steve Wood, the deputy information commissioner, wrote in guidance for businesses.

“We’ve heard stories of email inboxes bursting with long emails from organisations asking people if they’re still happy to hear from them. So think about whether you actually need to refresh consent before you send that email, and don’t forget to put in place mechanisms for people to withdraw their consent easily.”

Like Vitale, Wood said asking for marketing consent from people who had not given it initially, could be illegal. “It’s also important to remember that in some cases it may not be appropriate to seek fresh consent if you are unsure how you collected the contact information in the first place, and the consent would not have met the standard under our existing Data Protection Act,” he said.

GDPR | Consent Issues

One of the main issues regarding consent are that many businesses to date hadn’t recorded when and how they received consent to contact customers. For years many have just stored vast databases of email addresses.

“Some companies may simply be unable to demonstrate that they have consents, either because they don’t or they do not have a trace of it.” Said Lukasz Olejnik, a privacy researcher and consultant. “This fact, that some companies simply never had consents or are unable to demonstrate having consents, is sometimes discussed among both policymakers and consultants. There are also discussions over companies not respecting even the existing data privacy regulations.”

GDPR | Many in the UK are still not ready

The flurry of activity in the final weeks running up to May 25, made it apparent that many companies had left their preparations until almost deadline day. So much so, that the day before deadline day, the Information Commissioners Office (ICO) website experienced serious issues. Most likely the result of the numbers of companies leaving it to the very last moment.

Apparently, a downloadable PDF guide on the GDPR legislation from the ICO website caused their site to hang. When the PDF finally appeared, instead of the full guide, people trying to access it only got the front cover. On page 2, an error message read

“We’re sorry, but our website is unavailable at the moment. Please try again later.”

Not great for those who had not properly prepared previously!

The new regulations give people in the EU powers to access and control their personal data. They also give regulators greater power to levy fines on firms who mishandle data or fail to be transparent in how they collect and use it.

Yet according to the Federation of Small Businesses (FSB), despite the threat of heavy fines, a lot of businesses in the UK still aren’t ready for the changes brought in by the new GDPR laws.

Mike Cherry, national chairman of the FSB warned many smaller firms were still working on their compliance with the new GDPR laws, stating

The ICO reassured businesses it will not rush to levy large fines the moment GDPR comes into force. Information commissioner Elizabeth Dunham wrote this week that “although the ICO will be able to impose much larger fines, this law is not about fines. It’s about putting the consumer and citizen first”.

Like with PPI and more recently the challenge of fines for taking kids out of school for holidays in term times, it looks like we’ll have to watch this space and learn from the legal cases that unfold. Until then we can interpret the guidelines and try to comply with the regulations, as best we can.

Carillion

Carillion was the UK’s second biggest construction, and facilities management company, and a major service provider to the government has gone into liquidation with a £900m debt and £600m pension deficit. Their business model used a network of suppliers and sub contractors. In turn these suppliers often used other sub contractors for specific work on projects. The supply chain can be extremely long, from the larger first tier suppliers to small independent contractors at the other end. It’s therefore possible, some far down the supply chain didn’t know they were supplying Carillon.

The many suppliers owed money by Carillon are unlikely to see any of the debt repaid. A lot of these are small businesses, who having already waited the 120 days payment terms of Carillon, are not going to get paid. Small businesses are owed, by Carillion, on average £141,000, according to a survey of building, engineering and electrical firms by industry bodies. Medium sized ones, with 50 to 250 employees, are reportedly owed an average of £236,000, while on average larger companies face a shortfall of over £15m.

The size of Carillion, the amount of Government projects and involvement in the firm, made many suppliers feel protected. If a company the size of Carillon can can collapse then anyone can. This is a wake up call for many, and shows the need to review our business practices, processes and contracts to ensure protection from similar problems.

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Carillion

An estimated £31 Million is expected to be paid out by trade credit insurance firms, to help businesses in Carillion’s supply chain recover from their collapse. Trade credit insurance covers firms against the risk of not being paid for goods or services provided, following insolvency, protracted default or political upheaval. According to the BBC, sums ranging from £5,000 to several million pounds are being paid to those insured against bad debts. Only a minority of companies in Carillion’s supply chain had this cover, most of the other suppliers risk getting little or nothing back.

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Useful links

Mapping Carillion’s projects

Info. for those affected from PWC, Carillions Liquidators

Insurers to pay out £31M

Recommendations for unsecured creditors

Business experts have warned of the “domino effect” of the Carillion’s liquidation, which could see further insolvencies in the next three to six months, as others in the supply chain are affected. The liquidators state that “All agents, subcontractors and suppliers should continue to work and provide goods and services as normal, under their existing contracts, terms and conditions. You will get paid for goods and services you supply from January 15, 2018.” There’s no mention of funds due prior to this date, which will cause major problems for business, in the supply chain, who are  relying on that money to pay their own creditors and employees.

Carillion | What can we learn

The fall out from Carillions collapse could have ramifications for those not directly connected. Through poor cash flow of those within Carillion’s supply chain, who may owe companies outside of it, to those who seek replacement business, muscling in on contracts they wouldn’t have looked at before. Now is the time to review your business and market place and understand how you could be affected.

It is essential, for those affected by the Carillion liquidation to assess their situation quickly. Ensure you make immediate claims to the liquidator and closely monitor how the liquidation is proceeding. Check with your bank and creditors to see if there’s any flexibility on your payments and reduce costs where possible. If you can’t continue financially seek advice now, it may be possible to arrange a Company Voluntary Arrangement (CVA), as a recovery mechanism for profitable companies to recover from an individual bad debt.

Check your contracts, you may be able to suspend or terminate your contract with your customer. You should also see what your options are with anyone that you are sub contracting to. Your contracts may specifically set out what happens if one of the parties in the supply chain becomes insolvent.

If your contract doesn’t cover this, take steps to retrieve money owed to you, through legal means or withholding future work on the project until you’re paid. If you decide to take action, make sure you do it legally and within the terms of the contract.

There are many lessons to be learnt from Carillion’s collapse. For contractors, these events should encourage a business review. Firstly on how you enter into contracts and secondly your effectiveness of managing programmes and your record keeping. Whether directly affected or not, you should review your contracts, systems and processes. The Effectiveness of your processes, and the records you keep, are essential to protect yourself in the event disputes or situations, such as liquidation, that lead to non-payment. When things go wrong, these can be the difference between getting paid or losing everything.