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Small business in Australia comprise 95% of businesses. As a group this means that they contain increasing volumes of personal and business data. This creates escalating vulnerabilities as information is aggregated by various agencies. These vulnerabilities include identity theft and fraud. The threat environment of small business is extensive with both technical and human vulnerabilities. The problem is that the small business environment is being encouraged to adopt e-commerce by the government yet lacks resources in securing its cyber activity. This paper analysed the threats to this situation and found that questions of responsibility by individual businesses and the government are fundamental to the protection of small businesses information. Ultimately this raises the possibility of an undefined and unrecognised major vulnerability for Australia.