Security worries are causing many small and medium sized enterprises (SMEs) from engaging in e-commerce, the Federation of Small Businesses (FSB) notes.

The group welcomed recommendations by a recent House of Lords Science & Technology Committee report that called for e-crimes to be treated like any other kind of crime.

Credit card fraud is a worry for 18 per cent of SMEs, indicating the increasing need for robust IT security systems. However, only six per cent of smaller firms have experienced online credit card fraud.

The FSB supports work to set up a national e-crime co-ordination unit within the Metropolitan Police, and also welcomes proposals to make banks responsible for some of the losses incurred from electronic fraud.

FSB home affairs chairman David Croucher-Jones said: "The extent to which the UK's SME sector is engaged in e-commerce is an issue of considerable economic significance.

"E-crime needs to be given the same status as crime that is committed against a bricks and mortar business. Only when this is accomplished, by implementing the Lords recommendations, can more small businesses benefit from having a stronger online presence."

Research for Connect in 2007 found that 88 per cent of UK businesses were interested in Disaster Recovery systems primarily to protect their critical applications and data