Nearly three-quarters of UK companies block access to instant messaging services, according to an IT security firm.

A recent survey of 1,000 enterprise IT directors, unveiled at Infosec Europe 2008, found that fear of data loss, time-wasting and other misuse outweighs the potential productivity benefits.

The SmoothWall report suggests that just 11 per cent of companies have a policy in place that allows IM and monitors its use and content.

The survey showed that retail and distribution companies are the most likely to completely block access to IM, while financial services companies are the most likely to allow IM tools but monitor their use.

Last year the Trades Union Congress advised companies to draw up policies on acceptable use of social networking tools at the office, but suggested that total blocks were an "overreaction" to the problem.

Tom Newton, product manager at SmoothWall, believes that this is the right approach, particularly considering the increased development of tools to monitor and control IM traffic.

"The fear is understandable, but blocking access completely means missing out on all the benefits that IM tools can bring," he said.

Newton highlighted features such as presence monitoring, simple file transfer and rapid response to questions as some of the most obvious benefits of IM in the office.

SmoothWall said that the best plan is to put clear policies in place that specify correct and appropriate use, and to inform employees that content can and will be monitored.

"Agree on a single company-wide system, and set parameters around when employees can use the system for personal conversations," said Newton.