Many small business owners are unaware of the forthcoming changes in data protection rules, according to new research.
A study from bank Aldermore suggests 40 per of SMEs in London are not aware of the General Data Protection Regulations (GDPR) that will be introduced before the end of the year.
The GDPR means all companies will have to report security data breaches and allow clients the option to have their data permanently removed.
Anyone not aware of the new rules will face strong fines that could have a significant impact, but the poll revealed only seven per cent of businesses fully understood the implications.
Carl D’Ammassa, business finance group managing director, Aldermore, said: “The GDPR is the biggest shake-up in data protection to date and the results are worrying when looking at the amount of businesses that are unaware of the impact it will have on them.
“Data privacy, the appropriate use of customer information and breach notifications all need to be taken incredibly seriously.
“This is made especially apparent when one considers the increased sanctions businesses face if they don’t keep to the new regulations, including regular data protection audits, and fines of up to £20 million or four per cent of their annual turnover for the most serious validations.”