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Illegal Employment on the Rise in Cyprus as Undeclared Work Declines

A recent report on the labour market in Cyprus has revealed a worrying increase in illegal employment, even as the rate of undeclared work shows signs of decline. The findings, which were discussed during a parliamentary session, have raised concerns among lawmakers and authorities alike about the ongoing challenges in combating labour exploitation and maintaining fair employment practices.

According to data presented by the Ministry of Labour, the issue of illegal employment—workers being hired without proper work permits or contracts—has escalated in recent months. This rise comes at a time when efforts to reduce undeclared work, where employees are not registered or insured, have seen moderate success. Despite progress in regulating the labour market, illegal employment remains a significant issue, especially in industries such as construction, agriculture, and hospitality.

Understanding the Distinction Between Illegal and Undeclared Employment

Illegal employment refers to the hiring of individuals who are not legally permitted to work, often due to their immigration status or lack of proper documentation. These workers are typically vulnerable to exploitation, receiving lower wages and lacking access to basic protections such as healthcare and social security benefits. In contrast, undeclared work involves the employment of individuals who may be legally allowed to work but are not officially registered, depriving them of insurance coverage and other legal protections.

While authorities have made strides in reducing undeclared work, particularly through stricter inspections and penalties, the rise in illegal employment presents a new challenge. Lawmakers pointed out that illegal employment poses even greater risks, as it not only harms the workers involved but also undermines the integrity of the labour market and contributes to unfair competition among businesses.

Factors Driving Illegal Employment

Several factors contribute to the increase in illegal employment, according to the Ministry of Labour. One key driver is the influx of migrant workers, many of whom lack the necessary documentation to work legally in Cyprus. Without proper channels for legal employment, these individuals often turn to unregulated jobs where they are vulnerable to exploitation.

The growing demand for cheap labour, particularly in sectors like construction and agriculture, also plays a significant role. Employers seeking to cut costs may resort to hiring illegal workers, bypassing the legal requirements for contracts, wages, and benefits. This practice not only puts workers at risk but also creates an uneven playing field, where businesses that comply with legal standards struggle to compete with those exploiting illegal labour.

Efforts to Combat Illegal Employment

In response to these findings, the government has pledged to intensify its efforts to combat illegal employment. This includes increasing inspections, imposing harsher penalties on employers found guilty of hiring illegal workers, and strengthening collaboration with immigration authorities. Additionally, there is a push to create more pathways for legal employment for migrant workers, ensuring they can enter the labour market with proper documentation and protections.

Cybersecurity Is No Longer Enough As Corporate Threats Expand

Cyber threats are becoming harder to separate from wider risks facing businesses, their leaders and employees. A European Commission-backed survey cited by Euronews found that three in four employees had encountered suspicious emails, messages or links at work. Nearly four in 10 reported phishing attempts or redirection to fake websites designed to steal data or gain unauthorised access. Others had encountered attempts to obtain personal information, deploy malware or steal passwords.

For businesses, however, digital attacks are only part of a much broader security challenge. Organisations must increasingly prepare for threats that span online activity, internal misconduct and physical harm.

Beyond Cybercrime: A Wider Threat Landscape

Companies, executives and employees face risks from organised criminal groups, hostile state actors, insiders and individual attackers. While some threats involve ransomware, stolen credentials or data breaches, others can escalate into stalking, harassment, kidnapping or violence against senior leaders and their families.

This convergence of digital and physical risks is forcing businesses to rethink security as a broader strategic responsibility rather than a function focused primarily on IT systems.

Insider Threats Carry A Growing Cost

Current and former employees can pose significant risks when they misuse privileged access, steal data or sabotage systems. According to a Ponemon Institute report cited in the original article, the average total cost of insider threat incidents rose by approximately 135% between 2018 and 2025.

North America recorded the highest average annual cost in 2025, at $24 million, while Europe followed at $18.6 million. These figures highlight the financial consequences of internal security failures, which can undermine business continuity, damage reputations and affect earnings.

Executives And Their Families Face Greater Exposure

Security concerns are also becoming more personal. The 2024 killing of UnitedHealthcare CEO Brian Thompson in the United States demonstrated how grievances can escalate into violence against corporate leaders. Europe has experienced similar concerns, including the attempted kidnapping of the daughter of French cryptocurrency executive Pierre Noizat last year.

A survey by the International Security Management Association (ISMA) found that more than half of chief security officers reported that their organisations’ senior executives or family members received up to nine direct threats of harm each year through online, telephone, written or other channels.

Public records, social media and AI-enabled research can make it easier for attackers to gather sensitive information without sophisticated intelligence networks. Family members’ online activity may reveal personal details, while publicly available data can be combined to build a more complete picture of an executive’s life. One study cited in the original article found that home addresses were publicly discoverable in 94% of executive vulnerability assessments.

Economic Uncertainty And Political Division Add To Risk

Traditional threat models are struggling to account for an environment in which the path from grievance to action can be difficult to predict. Economic pressures and political anger can converge, with businesses and their leaders becoming visible targets for wider frustration.

In a survey of more than 2,300 security chiefs across 31 countries, Allied Universal found that 44% expected economic instability to be the leading security hazard in the year ahead. Political polarisation adds another layer of uncertainty: a 2024 Littler report found that 86% of European employers faced at least some difficulty managing divisive political beliefs in the workplace, up from 75% a year earlier.

Corporate announcements, restructuring decisions and executives’ public positions can all become flashpoints in a tense environment.

Threat Assessment Must Become A Boardroom Priority

Responding to these risks requires more than perimeter security. Companies need to identify potential triggers that could provoke strong reactions, from profit warnings and workforce reductions to decisions to halt research funding or public statements on political issues.

Mapping these pressure points requires cooperation between boards and security teams. Rather than treating threat assessment as a purely operational task, organisations need to anticipate how business decisions may affect their exposure and how quickly a situation could escalate.

AI Is Becoming Part Of The Security Response

Artificial intelligence can help security teams identify patterns and respond more quickly. Potential applications include CCTV object recognition, facial recognition, social media monitoring, weapon detection and predictive analysis.

Technology alone, however, cannot address the full range of risks. Cybersecurity remains essential, but it must form part of a broader framework covering insider threats, executive protection, physical security and political volatility.

As Europe marks cybersecurity month, the challenge for business leaders is to recognise how closely these risks are connected. Security is no longer simply a back-office function; it is an increasingly important part of corporate resilience and strategic decision-making.

ISMA, the International Security Management Association, is a global membership organisation for senior chief security officers at multinational companies. Founded in 1983, it has approximately 375 members, including executives from 25 companies in the FTSE 100, DAX and CAC 40, as well as a majority of Fortune 100 companies and 25% of the Fortune 500. Its members include security leaders from MetLife, S&P Global, Sky, Four Seasons, Unilever and Novo Nordisk.Cyber threats are becoming harder to separate from wider risks facing businesses, their leaders and employees. A European Commission-backed survey cited by Euronews found that three in four employees had encountered suspicious emails, messages or links at work. Nearly four in 10 reported phishing attempts or redirection to fake websites designed to steal data or gain unauthorised access. Others had encountered attempts to obtain personal information, deploy malware or steal passwords.

For businesses, however, digital attacks are only part of a much broader security challenge. Organisations must increasingly prepare for threats that span online activity, internal misconduct and physical harm.

Beyond Cybercrime: A Wider Threat Landscape

Companies, executives and employees face risks from organised criminal groups, hostile state actors, insiders and individual attackers. While some threats involve ransomware, stolen credentials or data breaches, others can escalate into stalking, harassment, kidnapping or violence against senior leaders and their families.

This convergence of digital and physical risks is forcing businesses to rethink security as a broader strategic responsibility rather than a function focused primarily on IT systems.

Insider Threats Carry A Growing Cost

Current and former employees can pose significant risks when they misuse privileged access, steal data or sabotage systems. According to a Ponemon Institute report cited in the original article, the average total cost of insider threat incidents rose by approximately 135% between 2018 and 2025.

North America recorded the highest average annual cost in 2025, at $24 million, while Europe followed at $18.6 million. These figures highlight the financial consequences of internal security failures, which can undermine business continuity, damage reputations and affect earnings.

Executives And Their Families Face Greater Exposure

Security concerns are also becoming more personal. The 2024 killing of UnitedHealthcare CEO Brian Thompson in the United States demonstrated how grievances can escalate into violence against corporate leaders. Europe has experienced similar concerns, including the attempted kidnapping of the daughter of French cryptocurrency executive Pierre Noizat last year.

A survey by the International Security Management Association (ISMA) found that more than half of chief security officers reported that their organisations’ senior executives or family members received up to nine direct threats of harm each year through online, telephone, written or other channels.

Public records, social media and AI-enabled research can make it easier for attackers to gather sensitive information without sophisticated intelligence networks. Family members’ online activity may reveal personal details, while publicly available data can be combined to build a more complete picture of an executive’s life. One study cited in the original article found that home addresses were publicly discoverable in 94% of executive vulnerability assessments.

Economic Uncertainty And Political Division Add To Risk

Traditional threat models are struggling to account for an environment in which the path from grievance to action can be difficult to predict. Economic pressures and political anger can converge, with businesses and their leaders becoming visible targets for wider frustration.

In a survey of more than 2,300 security chiefs across 31 countries, Allied Universal found that 44% expected economic instability to be the leading security hazard in the year ahead. Political polarisation adds another layer of uncertainty: a 2024 Littler report found that 86% of European employers faced at least some difficulty managing divisive political beliefs in the workplace, up from 75% a year earlier.

Corporate announcements, restructuring decisions and executives’ public positions can all become flashpoints in a tense environment.

Threat Assessment Must Become A Boardroom Priority

Responding to these risks requires more than perimeter security. Companies need to identify potential triggers that could provoke strong reactions, from profit warnings and workforce reductions to decisions to halt research funding or public statements on political issues.

Mapping these pressure points requires cooperation between boards and security teams. Rather than treating threat assessment as a purely operational task, organisations need to anticipate how business decisions may affect their exposure and how quickly a situation could escalate.

AI Is Becoming Part Of The Security Response

Artificial intelligence can help security teams identify patterns and respond more quickly. Potential applications include CCTV object recognition, facial recognition, social media monitoring, weapon detection and predictive analysis.

Technology alone, however, cannot address the full range of risks. Cybersecurity remains essential, but it must form part of a broader framework covering insider threats, executive protection, physical security and political volatility.

As Europe marks cybersecurity month, the challenge for business leaders is to recognise how closely these risks are connected. Security is no longer simply a back-office function; it is an increasingly important part of corporate resilience and strategic decision-making.

ISMA, the International Security Management Association, is a global membership organisation for senior chief security officers at multinational companies. Founded in 1983, it has approximately 375 members, including executives from 25 companies in the FTSE 100, DAX and CAC 40, as well as a majority of Fortune 100 companies and 25% of the Fortune 500. Its members include security leaders from MetLife, S&P Global, Sky, Four Seasons, Unilever and Novo Nordisk.

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