Financial Crime World

Ireland’s Financial Sector Braces for Surge in Cybercrime

Hacking, Phishing, and Online Scams - New Age Financial Crime Concerns

A new survey by the Compliance Institute revealed that cybercrime is now the leading financial crime concern for Irish financial services organizations. In a poll of 230 compliance professionals, cybercrime surpassed traditional offenses like tax evasion and insider trading.

  • Major Threats: Hacking, phishing, and online scams are the most common forms of cybercrime.
  • Evolving Challenges: Cybercrime poses new-age challenges that evolve and advance rapidly, making it challenging for both organizations and legislators to keep up.

Irish Government’s Initiatives to Combat Cybersecurity Threats

The Irish government recognizes the severity of cybersecurity threats and recently announced plans to establish a national anti-ransomware organization and provide financial support to small businesses. However, the timeline for these initiatives remains uncertain.

Consequences of Cyberattacks

Cyberattacks can have severe consequences, as the 2021 HSE hacking incident highlighted. The destruction of patient records led to widespread chaos, illustrating the devastating impact of such crimes.

Increasing Financial Losses from Cybercrimes

Banking & Payments Federation Ireland (BPFI) data reported a significant increase in cybercrime, with fraudsters stealing €85 million in 2022 – an 8.8% increase from the previous year. This trend underscores the need for robust cybercrime and data protection systems, given Ireland’s status as Europe’s largest data-hosting cluster.

Ireland’s Businesses’ Investment in Cybersecurity

According to Grant Thornton International Business Report from 2023, nearly half of surveyed Irish businesses plan to increase their spending on cybersecurity controls. Despite the recognition of the importance of cybersecurity investment, many business leaders reported resource constraints and prioritization of other areas as reasons for not investing.

Risks Associated with Cyberattacks

Mike Harris, Partner in Forensics and Cyber at Grant Thornton Ireland, expressed concern over the findings and the potential risks associated with cyberattacks.

  • Costly Disruptions: The costs and disruptions associated with dealing with ransomware attacks and data breaches are higher than ever.
  • No Industry Immunity: No industry is immune from cyber threats, and it is crucial that businesses remain vigilant and invest in cybersecurity to protect themselves and their clients.

Cybercrime Statistics for Small to Medium Irish Businesses

Grant Thornton’s 2022 cost of cybercrime report indicated that one in three small-to-medium Irish businesses experienced a cybercrime attack between May 2021 and April 2022, with an average payout of €22,773 to cybercriminals.