Ransomware and phishing attacks cost Irish businesses almost €10bn last year

Phishing and ransomware attacks, along with credit and debit card fraud, and operational technology-focused attacks have all increased. Picture: iStock

Cybercrime including phishing and ransomware attacks costs the Irish economy €9.6bn last year new research has found.

The Economic Cost of Cybercrime report published by Grant Thornton’s Cyber Security said the figure comes from the direct and indirect costs incurred due to cyber-attacks against businesses, individuals, and the government. 

They said the figure has risen exponentially since 2014 when the cost of such crimes was estimated at €630m.

Phishing and ransomware attacks, along with credit and debit card fraud, and operational technology-focused attacks have all increased in recent years with ransomware attacks, in which cybercriminals demand payment for the release of compromised materials, by far the most significant form of cybercrime noted in 2020.

Ransomware attacks alone and the cost of remedying such attacks reached over €2bn in 2020. The €2bn cost of ransomware attacks in 2020 estimates the direct costs associated with these events such as the ransoms being paid as well as indirect costs such as infrastructure and IT bills and reputational damages incurred through public discussion and media coverage.

The report also notes a 100% increase in computer viruses and a 20% increase in phishing attacks, where fraudulent communications purporting to be from reputable sources were sent to businesses and consumers. This comes as credit and debit card fraud also increased, leading to losses of €12m.

Mike Harris, head of Cyber Security Services at Grant Thornton said many businesses and individuals are still grappling with how to insulate against such threats.

"Cybercriminals are innovative and opportunistic. This means we also need to be innovative in how we mitigate against potential cyber-attack risks. Ransomware attacks, for example, were once targeted mainly at consumers but we now know businesses, organisations and governments are the main targets for these types of crimes."

"Cyber-attacks, more generally, have huge consequences to balance sheets, reputation, and data protection, and this report highlights that the frequency of these attacks is growing rapidly."