McAfee's report into Web 2.0 technology has revealed the extent of the risks involved.

International package delivery companies may need to step up their online defences, after a report shows Web 2.0 technology security issues are costing businesses millions.

Defined broadly as consumer social media applications such as Facebook, Twitter and YouTube, Web 2.0 presents opportunities and risks for businesses, the study from security experts McAfee says.

According to the report, more than $1.1 billion (£693,800) was lost by organisations surveyed due to security incidents caused by this technology.

In the last year, 60 per cent of firms experienced a security issue because of Web 2.0, with virus and malware infections being the most common.

On the other hand, businesses seem willing to adopt social media tools, with around three-quarters of firms saying expanding Web 2.0 use could create new streams of revenue.

Forty per cent said social media use in their companies had increased productivity.

According to Social Media Portal, Web 2.0 may eventually replace traditional online advertising.

Posted by Rob Elliott

Article Added: 30/09/2010 09:33:45