The threat of financial crime has increased for 9 in 10 businesses as they adapt to new remote working practices, according to research carried out by the Association of Compliance Officers Ireland.
The survey found that more than one quarter of firms surveyed have 100% of their workforce working remotely.
60% of respondents say threats of financial crime have increased 'a little' as a result of remote workinf, while a further 27% believe they have increased ‘considerably’.
77% of firms say that new compliance issues have arisen because of a remote workforce, with 68% saying these issues can be ‘easily managed’.
Commenting on the findings Michael Kavanagh, CEO of the ACOI, said that 86% of businesses surveyed have 50% of their workforce at home, while 27% have their entire team working remotely.
"In March of this year businesses had a very rapid transition to reimagining their normal business processes and procedures within a very short time, as thousands of workers were redeployed to work from home. It seems to be that remote working, in some form or another, is here to stay and as we emerge from lockdown and plan for the future, now is the time to take stock and formalise what might have originally been an ad hoc approach to having a team of staff work from multiple locations across a county, and in some cases, throughout the country," he said.
Mr Kavanagh said that members are becoming increasingly concerned about cyber security, with a recent report revealing that 41% of firms in Ireland have reported at least one cyber security incident in 2020.
"Incidences of ransomware attacks on organisations are on the up, there is greater risk of security incursions on communication networks such as Zoom and Skype. The increased sharing of work information and files on mobiles devices and platforms, rather than across secure office intra-nets, also presents new and evolving security challenges," he said.
According to the research, the level of risk varies depending on the sector, as Mr. Kavanagh explained.
"It is widely accepted among the financial services sector that Covid-19 has led to heightened risks in relation to money laundering and terrorist financing. A recent ACOI webinar highlighted the extent to which financial crime is on the rise around the world – all the usual range of criminal activity is there, but with a Covid-19 twist," he said.
Mr Kavanagh pointed out that people can take a number of steps to protect their business against cyber attacks.
"While the challenges and changes can seem sweeping, there are small steps a business can take to begin with, that will help - from keeping up with best practice regarding regular software updates and effective system maintenance, to good password control, to introducing process such as two-step authentication," he said.
"Larger companies might have the resources to bring in biometrics and facial recognition technology to help with secure identification, and there is also protection available at a financial level by ensuring you have a robust cyber-security insurance policy in place. A combination of technology and human resources will always be the best approach to creating and maintaining cyber-safe and secure working practices and operational environments," he added.
