Financial Crime Statistics Globally in Ireland: A Growing Concern
Ireland is not immune to the growing issue of financial crimes globally. According to experts, financial crime costs the Irish economy hundreds of millions of euro every year and has a devastating impact on individuals and communities.
Defining Financial Crime
Colm O’Flaherty, director at Deloitte’s Financial Crime Advisory team, defines financial crime as “behaviours looking to make a profit off illegal activities” that cover a wide range of actions from theft and fraud to bribery and corruption. The type of financial crimes being committed in Ireland are varied and often sophisticated.
Types of Financial Crimes
KPMG managing director Katherine Gillespie notes that financial crime manifests in many different forms, affecting both businesses and individuals. Some examples include:
- Online fraud
- Payment-card fraud
- Phone scams
- Investment-related scams
These types of scams are becoming increasingly common, with criminals using advanced technology to dupe people into parting with their money.
Growing Threat of Financial Crime
One example of the growing threat of financial crime in Ireland is the use of deepfake messages seeking money from unsuspecting victims. This type of scam highlights the need for greater awareness and vigilance.
Money Mule Activity
According to Deloitte estimates, money mule activity has increased to €17.5 million in the first half of 2023. Criminals are targeting students and young people to become unwitting money mules, which can have serious consequences for those involved, including being barred from obtaining a US visa.
Impact on Victims
The impact of financial crime on victims is significant, with many losing hard-earned savings and becoming more vulnerable as a result. Financial crime also has a twofold impact on communities, enabling and perpetuating other forms of criminality and diverting public money and resources away from productive activities.
Prevention and Education
Experts agree that the first line of defence against financial crime lies with individuals, who need to be aware of how technology can be used to commit crime. They should always do the “sniff test” when engaging with unfamiliar online or phone conversations and report any suspicious activity to their bank.
O’Flaherty notes a hole in Ireland’s overall defence against financial crime - the lack of information sharing between banks. He believes that enabling financial institutions to share information and knowledge would help prevent and address financial crime more effectively.
Gillespie agrees that better education is needed to combat financial crime and change attitudes towards it. She believes that by raising awareness and understanding the wider implications of financial crime, people will become more vigilant and a zero-tolerance approach can be achieved in society.
Conclusion
Financial crime may always be present to some extent, but with greater awareness and cooperation, Ireland can work towards reducing its impact on individuals and communities.