As part of National Identity Fraud Prevention Week, which raises awareness of the risk of identity fraud for both individuals and small firms, The Federation of Small Businesses (FSB) has issued a warning to small business owners to take precautions against one of the fastest growing crimes in the UK.

Even though awareness of the problem is high, many small businesses are still not taking the right steps to ensure they are safe from fraudsters.

In particular, some small firms are still not destroying sensitive documents, checking their financial status with credit reference agencies and looking after information about their customers and suppliers.

David Croucher, FSB Home Affairs Chairman, said, "It is often assumed that identity fraud only affects individuals, but it is becoming increasingly clear that small businesses are in danger as well. The livelihoods of the owners and the jobs of 12 million employees are at risk.

"That is why it's so important for small businesses owners to take adequate precautions, like shredding documents, protecting IT systems and checking the details of debtors. Small employers should also be very wary of anyone that makes unexpected contact by phone, fax or email and asks for sensitive information about the business.

"It is so much easier to take some simple precautionary steps now than to have to try to sort out the mess later on, which can take months or even years of paper-chasing."