As many as 100,000 small and medium-sized businesses have fallen victim to identity theft losing an average of £13,500 each, according to research by fraud prevention firm CPP.

Fraud victims see their businesses credit rating negatively affected as a result and also suffer damages to their reputation and a loss of customers.

One in five small firms admit they are vulnerable to to corporate identity theft due to lax procedures and protocol, according to a separate poll from the firm.

"Our report demonstrates that corporate identity fraud is a real concern for businesses. It's key that organisations ensure that they have secure methods of storing sensitive information to avoid falling victim to this growing problem," said Michael Lynch, fraud expert at CPP.