Financial Crime World

Cybercrime Surges Ahead as Top Financial Threat in Ireland: Findings from The Compliance Institute’s Survey

Introduction

The Compliance Institute’s recent Financial Crime survey revealed that cybercrime is the number one financial threat in Ireland. In this article, we will discuss the key findings of the survey, the Irish government’s response, and the impact of cybercrime on individuals and organizations.

Survey Findings

The Compliance Institute polled 230 compliance professionals working primarily in Irish financial services organizations. The results showed that:

  • 34% of those surveyed identified cybercrime as the most pressing financial crime concern.
  • Cybercrime surpasses traditional financial crimes such as tax evasion and fraud, which took joint second place at 21%.

Michael Kavanagh, CEO of The Compliance Institute, expressed his concern over the rising trend of cybercrime. He stated, “Financial crimes like tax evasion and insider trading have long been a concern, but cybercrime is a new threat on the horizon. It’s developing and advancing at such a rapid pace that organizations and lawmakers are struggling to keep up.”

Irish Government’s Response

As part of the mid-term review of the 2019-2024 Cyber Security Strategy, the Irish government announced plans to establish a national anti-ransomware organization and offer cash subsidies to small businesses to help combat cybersecurity threats. However, the timelines for these initiatives remain unclear.

Consequences of Cybercrime

Cybercrime can have disastrous consequences for individuals and organizations. The HSE hacking incident in 2021 served as a prime example, causing significant damage to the healthcare system. Kavanagh continued, “These attacks can have disastrous consequences not just for the individuals and organizations targeted but for the wider public.”

Impact on Fraud

Banking & Payments Federation Ireland reports that fraudsters stole nearly €85 million (€84.6m) through frauds and scams in 2022, a 8.8% increase from the previous year. With this trend continuing, there are growing concerns about the potential impact on the new year.

Regulatory Response

In response to emerging cybersecurity issues, regulators in Ireland and around the world are issuing new guidance to firms. This includes addressing fake documentation and the reliability of information sources.

Conclusion

As the battle against cybercrime continues, all stakeholders must work together to find a balance between regulation and innovation while providing measures for the general public to protect themselves. The Compliance Institute’s survey highlights the importance of this issue, underscoring the necessity for robust cybercrime and data protection systems.