There are great opportunities for small businesses on the internet but they need to be aware of fraud issues.

That's according to Linus Gregoriadis of e-consultancy, who said that online security would improve when more websites adopt the 3D Secure technology developed by Visa and MasterCard.

"There is a problem out there with online fraud," said Mr Gregoriadis. "On the high street they have chip and pin, which has proved quite successful in getting rid of a lot of fraud on the high street.

"Small online businesses have not all yet moved on to 3D Secure - which is a MasterCard secure code verified by Visa - this will have a positive impact as take up increases."

He added: "There are fantastic opportunities for small businesses online. If people do things properly then they can get good search engine visibility."

It is also essential that small businesses have good IT support when things go wrong and ensure that they have disaster recovery plans in place.

Those companies thinking of engaging in online marketing need to ensure they are receiving good advice on the subject.