The purpose of this dissertation is to analyse the available information on the threats posed by use of the Internet, and responses to these threats. From this information and from primary research carried out with local businesses, a framework has been developed to help businesses develop an Internet Security strategy. The focus of the dissertation is to provide the small to medium sized business sector with a report that shows the current status and recommend an approach for overcoming the threats posed by transacting over the Internet. An increase in the understanding of the issues concerned with Internet security and the methods to protect businesses against these threats was achieved through research of existing literature on the Internet, books on the subject and material developed by organisations and companies involved in the area of Internet security. Primary research was also carried out to understand the concerns and current policies of lrish small-to-medium sized businesses.