Financial Inclusion a Distant Dream for Many in Ireland as Financial Crime Runs Rampant
A Growing Concern: Cybercrime Emerges as the Number One Threat in Ireland
A recent survey by the Compliance Institute has revealed that financial crime is a major concern in Ireland, with cybercrime emerging as the number one threat. The study polled 230 compliance professionals working in Irish financial services organizations and found that hacking, phishing, and online scams are the most prevalent forms of financial crime in the country.
Survey Findings: Cybercrime Tops the List
The survey’s findings show that:
- 34% of respondents identified cybercrime as the most prevalent financial crime in Ireland
- Tax evasion (21%) and fraud (21%) came in second and third place, respectively
- Money laundering accounted for 19%
- Bribery and corruption accounted for only 4%
- Insider trading was found to be the least prevalent form of financial crime at just 1%
The Impact of Financial Crime
The survey’s findings have sparked concerns about the impact of financial crime on individuals, businesses, and the wider economy. “Cybercrime is not a new phenomenon, but its pace of development and advancement is outstripping our ability to keep up,” said Michael Kavanagh, CEO of the Compliance Institute.
Addressing the Growing Threat
Kavanagh emphasized the importance of addressing the growing threat of cybercrime, citing plans to create a national anti-ransomware organization and offer cash subsidies to small businesses. He also noted that Ireland’s position as Europe’s largest data hosting cluster highlights the need for elevated cybercrime and data protection systems.
The Rise of Fraud
Statistics from the Banking & Payments Federation Ireland show that fraudsters stole nearly €85 million through scams and frauds in 2022, an increase of 8.8% on the previous year. Kavanagh warned that there is a real concern that these figures will continue to rise in the coming year.
Regulating Financial Institutions
The survey’s findings have also raised questions about how regulators can effectively supervise and regulate financial institutions without stifling innovation, while also providing guidance on emerging cybersecurity issues such as fake documentation and information sources.
A Call to Action
Businesses, organizations, and individuals must all take steps to prepare and respond to the growing threat of financial crime. As Kavanagh emphasized:
- Regulators need to ask themselves how they can regulate and supervise without stifling innovation
- Businesses and organizations need to ask how they can best prepare and respond
- The general public also needs to know what measures they can take to protect themselves
Conclusion
Financial inclusion is a distant dream for many in Ireland as financial crime runs rampant. It is essential that all stakeholders work together to address the growing threat of cybercrime and fraud, while also promoting innovation and protecting individuals and businesses from financial harm.