Thousands of º£½ÇÊÓƵ SMEs are still relying on archaic, paper-based verification methods, leaving them susceptible to cyber threats, fraud, and impeding their growth and trust.
Umazi, a regtech company, has released a report urgently calling for a revamp of the º£½ÇÊÓƵ's corporate identity framework, highlighting that outdated verification systems are compromising the strength of the º£½ÇÊÓƵ's digital economy, as reported by .
Umazi's CEO Cindy van Niekerk commented on the stark contrast between perception and reality: "The irony is painful," she said.
"While we talk about fintech and AI leadership, the average SME is still sending scanned passports and PDFs to prove they exist. This isn't a digital economy – it's a digital illusion."
The prevalence of cyber attacks is escalating, with the report revealing that 70% of SMEs are concerned about the theft of their business identity, a fear that grows as cybercriminals utilise sophisticated AI techniques such as deepfakes and synthetic identities.
Van Niekerk contends that without updated digital verification methods, small businesses are stuck with "manual, fragmented" checks that not only fail to deter criminals but also hinder legitimate operations with unnecessary delays and redundancies.
SMEs, unlike larger corporations with dedicated legal teams and established brand recognition, are particularly at risk of impersonation and fraud, yet they suffer most from these dated procedures.
Regulatory blindspot
This call to action comes amid increasing focus on the º£½ÇÊÓƵ's overall cyber resilience.
M&S chairman Archie Norman disclosed to parliament this week that two major British companies had fallen victim to ransomware attacks recently – neither of which had been made public.
Norman endorsed compulsory reporting of cyber breaches, describing it as a 'very interesting idea' that could help plug systemic vulnerabilities.
"We have reason to believe there have been major cyber-attacks on large British companies in the last four months that have unreported", he informed MPs.
Umazi contended that a disjointed and patchy approach to digital identity not only heightens fraud risk but also hampers the wider circulation of capital and confidence in the system.
A call for action
Umazi is urging regulators to champion a unified, reusable digital identity for enterprises, which would enable companies to establish their credibility just once.
"SMEs need more than a lip service", said van Niekerk. "They need legislation, real-time verification tools, and regulatory momentum. We don't need another white paper, we need political courage."
Without decisive action, she cautioned, the º£½ÇÊÓƵ economy could forfeit millions through stunted growth, postponed investment, and weakened global standing.
"From retail to education, from health to hospitality – SMEs are the backbone of Britain's economy", she added. "But we're still treating them like second-class citizens when it comes to identity."
