Types of Financial Crimes Rampant in Ireland, Warns Expert

Financial crimes are on the rise in Ireland, with various forms of fraud emerging as significant threats. According to Katherine Gillespie, managing director of KPMG Ireland and lead of its forensic team, financial crimes can have devastating consequences for individuals and companies alike.

Asset Misappropriation: The Most Prevalent Form of Financial Crime

Asset misappropriation is the most common form of financial crime in Ireland, with employees stealing or misusing a company’s cash or other assets. This type of fraud is difficult to identify, measure frequency, and estimate economic damage caused due to its illegal and covert nature.

Examples of asset misappropriation include embezzlement, theft, and fraudulent activities.
These crimes often occur due to desperation, pressure from factors such as gambling addictions, health problems, or crippling debts, or simply because of greed and an easy financial gain.

Payment Card Fraud: A Growing Concern

Payment card fraud is another growing concern in Ireland, with the rise of online shopping and payments providing an increased opportunity for fraudsters. Gillespie warns that “the prevalence of online shopping and payments means there is increased opportunity for fraudsters.” With advances in technology, it’s becoming harder to detect which sites are real and which are not.

Payment card fraud can take many forms, including credit card fraud, debit card fraud, and online payment scams.
Individuals and companies must be cautious when making online transactions and ensure they are using secure websites and protecting their personal and financial information.

Money Laundering: A Worrying Trend

Money laundering is another worrying trend in Ireland, with criminals seeking to hide the origins of criminal proceeds. Gillespie warns that money mules, where individuals are drawn into helping criminal gangs in return for payment, have raised concerns.

Money laundering can involve concealing the source of funds obtained through illegal activities such as corruption, drug trafficking, people trafficking, or terrorist funding.
Individuals and companies must be aware of the signs of money laundering and report any suspicious activity to the authorities.

Cybercrime: A Growing Threat

Cybercrime is a growing threat in Ireland, with companies and individuals being targeted by hackers, email scams, and other forms of online fraud. Gillespie warns that cybercrime can range from hacking a company’s IT systems and demanding ransom money to sending emails that purport to be from a supplier or senior employee requesting payments be made.

Cybercrime can result in significant financial losses and damage to an individual’s or company’s reputation.
Individuals and companies must take necessary precautions to protect themselves from cyber threats, including using strong passwords, keeping software up-to-date, and being cautious when opening emails and attachments.

Investment Fraud: A Growing Concern

Investment fraud is also on the rise in Ireland, with people being encouraged to invest in schemes and projects that do not exist or where those behind the schemes misuse funds for personal gain. With lower interest rates, individuals have been looking for alternative investment opportunities, creating a fertile ground for fraudulent activity.

Investment fraud can result in significant financial losses and damage to an individual’s reputation.
Individuals must be cautious when investing and research any investment opportunity thoroughly before committing to it.

Expert Warning: Be Aware of Financial Crimes

Experts warn that financial crimes are increasingly sophisticated, making it essential for individuals and companies to be aware of these types of fraud and take necessary precautions to protect themselves. Gillespie warns that “it’s crucial to educate yourself on the warning signs of financial crime and take steps to prevent falling victim.”