Financial Crime World

Title: Ireland’s Top Financial Crimes: Cybercrime Surges Ahead, Tax Evasion and Fraud Following Close Behind

Compliance Institute Survey Reveals Prevalence of Financial Crimes in Ireland

According to a new survey by the Compliance Institute, financial crimes, especially cybercrime, are a growing concern for compliance professionals in Irish financial services organizations. let’s look at the key findings from the survey.

Cybercrime is the Leading Financial Crime

  • Survey respondents identified cybercrime as the most prevalent financial crime in the country.
  • Cybercrime received a significant 34% share of the votes.

Specific Cybercrime Threats

  • Hacking, phishing, online scams, and other cybercrime variants took the leading position.
  • This finding underscores the growing sophistication and adaptability of cybercriminals in Ireland.

Tax Evasion and Fraud in Second Place

  • Fraud and tax evasion took the second place, each accounting for 21% of the total votes.

Michael Kavanagh’s Perspective on Cybercrime

  • Michael Kavanagh, CEO of the Compliance Institute, emphasized the evolving nature of cybercrime.
  • He noted that while traditional financial crimes like tax evasion and insider trading continue to pose threats, cybercrime is a new-age danger.

Irish Government’s Response to Cybersecurity Threats

  • The Irish government’s response to cybersecurity threats has been acknowledged by Kavanagh.
  • However, the timelines for the government’s initiatives remain unclear.

Cost of Fraud in the Irish Financial Sector

  • The cost of fraud in the Irish financial sector amounted to nearly €85 million ($93 million) in 2022.
  • This represents an 8.8% increase compared to 2021.

Concerns of a Surge in Fraud Figures

  • As the year begins, concerns of a surge in these figures persist.
  • Kavanagh stated, “With Ireland becoming Europe’s largest data hosting cluster, the urgency for robust cybercrime and data protection systems cannot be overstated.”

Regulators, Businesses, and the Public: Combatting Financial Crimes

  • Regulators, businesses, and the public must join forces to address the challenges posed by financial crimes, particularly cybercrime.
  • Kavanagh added, “Regulators must strike a balance between effective regulation and innovation; businesses must prioritize investment in comprehensive cybersecurity measures and crisis response plans; and the general public should be aware of available resources and best practices to protect themselves.”