IRISH payment fraud is on the rise.
The practice – which can include dodgy messages and scam emails – is a growing concern in Europe, especially in the rapidly evolving digital marketplace.
Fraudsters continually adapt and use new ways to exploit digital systems and bypass security measures.
The cost to businesses and individuals runs into many millions each year. A new report by the Central Bank this week found that the total value of fraudulent payments rose to €126million in 2023.
Before Christmas, Gardai also warned there had been a major rise in smishing frauds, with a number of banks and financial institutions reporting incidents.
Meanwhile, one in five regular online shoppers lost money through scams over the past year, with some losing hundreds of euros, according to figures from the Banking & Payments Federation Ireland.
Writing in The Irish Sun on Sunday today, Michael Kavanagh, CEO of the Compliance Institute, said the new stats from the Central Bank are further evidence of how pervasive a threat payment fraud has become...
WHILE the internet and tech are now unavoidable and have brought untold benefits to how we live our lives, they have also brought many dangers.
Hackers and cybercriminals are continuously improving their practices, constantly finding new ways of stealing material and outsmarting even the most advanced security systems.
Fraudsters’ growing sophistication means scams have become harder to spot, and therefore easier to fall for.
They are also using technology to identify and target people, as well as to extract the information they need to steal from someone.
AI, a technology that has developed rapidly in recent years, is being increasingly used by scammers in their attempts to defraud people.
TRUST BY IMPERSONATION
The Central Bank’s new data on Irish payment fraud, published last week, shows that the total value of fraudulent payments here was 26 per cent higher in 2023 than in 2022.
Around 98 per cent of card payment fraud occurs where fraudsters use stolen cards, account or personal information for a payment.
“Manipulation of the Payer Fraud” occurs where a fraudster gains trust by impersonation and then convinces the individual to make payments to them.
The Behind The Data paper also reveals that the proceeds from fraudulent payments are predominantly transferred to accounts outside Ireland.
NUMBER ONE THREAT
Incidents of fraud are more prominent when measures such as the EU’s strong customer authentication are not in place.
A survey conducted by the Compliance Institute in 2023 found cybercrime to be the number one threat when it comes to financial crime in Ireland.
While financial crimes such as tax evasion and insider trading could be classed as “traditional” criminal pursuits, cybercrime is more new-age and is developing at a pace so fast that organisations and legislators cannot keep up.
The huge increase in online shopping has increased opportunities for fraudsters.
THOUSANDS LOST
One in five regular online shoppers lost money through scams over the past year, with some losing hundreds, according to Banking & Payments Federation Ireland figures.
It must be added that some people have lost thousands — or indeed more — after being defrauded by scammers.
Our own findings highlight the intrusiveness people continuously face when they open their mailbox every day.
Many people don’t realise that by inputting their email address into a site while shopping or perusing the internet, they are effectively giving permission to receive spam on a regular basis.
EDUCATION MATTERS
Some sites make it extremely difficult to unsubscribe from their mailing lists, or to stop the use of tracking cookies, thereby trapping people into receiving a barrage of unwanted junk mail.
It’s incumbent on us all to educate ourselves so that we can protect ourselves as much as possible from the dangers of cybercrime.
People must take ownership of what they can do to protect their data.
Simple steps like ensuring they have adequate security and anti-virus software on their PCs and laptops are crucial.
IMPORTANT TIPS
Regular password changes, while they might be a nuisance, are always very important.
When shopping online, look for a padlock symbol beside the website address and ensure the web address begins with ‘https’ as both indicate the site is secure.
Avoid clicking on links from social media or pop-up ads; instead, type the website address directly into your browser.
We all need to be mindful when sharing our details with online sites and do what we can to protect ourselves from spammers and, worse still, fraudsters.
