Small businesses lost over $600 million due to security breaches in 2007, according to a new report from the Australian Institute of Criminology.

The Australian Business Assessment of Computer User Security report, which questioned about 4000 businesses, recorded that 13% of small businesses, 20% of medium businesses and 30% of large businesses have been hit by security problems.

The study also shows that the businesses experiencing the most security breaches are in the administration and support services area, at 21%, followed by rental, hiring and real estate services at 19%.

The cost of these security breaches was between $595 million to $649 million, with the three most common attacks caused by viruses, spyware and phishing, which use fake websites to gather information.

Kelly Richards, research analyst at the Australian Institute of Criminology who authored the report, says that while 85% of businesses had security strategies in place, a large number remain ignorant of how to deal with digital attacks.

This story is available in full from Smartcompany.com.au