Cybersecurity Threat Looms Large Over Irish Banking Sector: Survey Reveals Alarming Trends

The Compliance Institute has released a recent survey that highlights the growing threat of cybercrime in Ireland’s financial sector, with hacking, phishing, and online scams emerging as the most prevalent forms of financial crime.

Key Findings

• Cybercrime is now the number one threat to financial security in Ireland.
• Frauds and scams resulted in nearly €85 million stolen in 2022, an increase of 8.8% from the previous year.
• Despite the growing threat, many Irish businesses do not intend to invest in cybersecurity measures, citing resource constraints or prioritizing other areas of their business.

Urgent Attention Required

According to Michael Kavanagh, CEO of the Compliance Institute, cybercrime is developing at a pace so fast that it’s outstripping the ability of organizations and lawmakers to keep up. “While traditional forms of financial crime may still pose significant threats, cybercrime is a new-age threat that requires urgent attention,” he warned.

Ireland’s Data-Hosting Hub

Ireland’s status as Europe’s largest data-hosting cluster has put a spotlight on the need for elevated cybercrime and data protection systems. Kavanagh emphasized, “The consequences of inaction could be catastrophic, not just for individual businesses but also for the wider public.”

Investment in Cybersecurity Measures

Despite some Irish businesses’ reluctance to invest in cybersecurity measures, almost half of those surveyed plan to increase spending on cybersecurity controls over the next 12 months. Mike Harris, partner in Forensics and Cyber at Grant Thornton Ireland, believes that while it’s encouraging to see businesses recognizing the importance of cyber investment, more needs to be done.

Recent High-Profile Attacks

Recent high-profile attacks on businesses such as Munster Technological University serve as a stark reminder of the urgent need for increased investment in cybersecurity measures. Grant Thornton’s cost of cybercrime report in 2022 found that one in three small-to-medium businesses in Ireland fell victim to cybercrime between May 2021 and April 2022, with an average payout of €22,773.

Conclusion

As the Irish financial sector continues to grapple with the growing threat of cybercrime, it’s clear that urgent action is needed to protect against these threats. With more than half of surveyed businesses recognizing the importance of cyber investment, it’s time for organizations and lawmakers alike to take a proactive approach to ensuring the security of Ireland’s financial systems.