How Micro and Small Enterprises Perceive Information Technology Fraud: A Study of Indonesian’ Small Businesses

Micro, Small, and Medium Enterprise (MSME) managed to survive an economic downturn in many countries because of its resilience. It is much easier for MSME’s owner to adjust its business and respond to the changes in markets. However, MSME also needs to admit they it has weaknesses in areas like marketing, technology, and finance. The adoption of information technology by MSMEs is generally still low because of the great hesitancy of MSME to adopt new technology. This hesitancy is understandable. Despite the usefulness of information technology, the adoption of information technology may put MSME at risk in becoming a potential victim of information technology fraud. This study explores how MSMEs perceive the risks of information technology fraud and how much their perception affected their decision in utilising information technology. The result of this study can be used to formulate necessary steps in addressing small business wariness toward information technology risks. This study hoped to provide information to develop necessary steps in introducing IT for MSMEs who still consider IT as a ‘dangerous thing’.