The Devastating Consequences of Cyber Crime: Hacking and Phishing Identified as Top Threats, Survey Finds

Hacking and Online Scams Identified as Major Cyber Crime Threats

A recent survey conducted by the Compliance Institute has revealed that hacking, phishing, and online scams are considered a bigger threat than fraud and tax evasion. Out of the 230 compliance professionals working primarily in Irish financial services organizations who participated in the survey, 34% identified cyber crime as the most insidious issue. In contrast, fraud and tax evasion were ranked in joint second place, with 21% of respondents selecting them as significant threats.

The survey also highlighted money laundering (19%), bribery and corruption (4%), and insider trading (1%) as additional concerns within the cyber crime category. These findings indicate the growing impact of cyber crime, which is rapidly evolving and outpacing the ability of organizations and legislators to keep up.

Michael Kavanagh, CEO of the Compliance Institute, acknowledged the urgent need for action in addressing cyber security threats. He emphasized that while traditional financial crimes such as tax evasion and insider trading have long been recognized, cyber crime presents new challenges that require innovative solutions. Kavanagh applauded the government’s plans to create a national anti-ransomware organization and offer cash subsidies to small businesses to combat cyber security threats.

The devastating consequences of cyber attacks were exemplified by the 2021 hacking of the Health Service Executive (HSE), which caused widespread disruption and posed a significant risk to patient care. Kavanagh stressed the severity of such crimes and expressed concern that the figures for fraud and scams would continue to rise in the coming year. According to statistics from the Banking & Payments Federation Ireland (BPFI), fraudsters stole nearly €85 million through various schemes in 2022, marking an 8.8% increase from the previous year.

As Ireland occupies the position of Europe’s largest data-hosting cluster, the need for robust cyber crime and data protection systems has become paramount. Regulators must strike a balance between regulation and innovation, ensuring that businesses and organizations can prepare and respond effectively while empowering the general public to take measures to protect themselves.

In conclusion, the survey conducted by the Compliance Institute highlights the growing threat of cyber crime in Ireland. Hacking, phishing, and online scams have emerged as major concerns, surpassing traditional financial crimes like fraud and tax evasion. With cyber attacks becoming more sophisticated and frequent, it is imperative for organizations, regulators, and individuals to prioritize cyber security measures to safeguard against potential threats..