The latest round of the Islamic State’s (IS) online payment system has been hit with a hack that has disabled its ability to make purchases.

The attack, which took place on Tuesday, has caused a “significant disruption” in payments, according to a spokesperson for the Bank of Ireland, who said the bank was not able to confirm the identity of the victim.

“We have not yet been able to ascertain the identity or the source of the breach,” the spokesperson said.

“Pay All has a number of safeguards to make sure it does not compromise the security of customers’ financial information, and as such, we are not able, at this stage, to confirm who is responsible.”

The spokesperson added that the Bank was working with “the appropriate law enforcement authorities” and that the bank “will take all appropriate measures to mitigate any potential damage to its customers’ finances”.

“We are working closely with our legal advisors to determine whether this incident could result in any legal proceedings,” the bank said.

The bank has been criticised for not alerting customers to the issue in advance.IS has recently introduced a new payment system for its own use called ‘Pay’ that uses a QR code to scan purchases and then a credit card.

However, this was not recognised by the Bank’s online payment systems, leading to delays in payments being made.