Fresh wave of fraud hits as Ulster Bank and KBC exit market

There’s a lot of account switching going on, with fraud prominent

Fraudulent messages also purport to come from power companies, couriers, online marketplaces, streaming services, mobile providers, and even your employer.

Never click on links in text messages or emails that appear to be from your bank. That’s the message from FraudSMART, the banking industry’s fraud awareness body.

They say that victims of message scams, or ‘smishing’, were tricked out of an average of €1,700 in the first half of this year. Over the same period, businesses were conned out of an average of €14,000.

Because Ulster Bank and KBC are in the process of leaving the Irish market, there’s a lot of bank account switching going on at the moment. As anyone who’s ever switched provider will tell you, this is a difficult and stressful business and involves a lot of back and forth with your new bank. If you get a message in the middle of all this telling you that there’s a problem and that you need to click on a link, you’re more likely to think it’s legit.

But it’s never legit. Your bank will never send you links, so never click on them.

Niamh Davenport of FraudSMART said: “FraudSMART members have seen text message scams almost double in the first half of this year compared to the same period last year, with consumers conned out of an average of €1,700 per scam. Businesses meanwhile are suffering average losses of €14,000 due to invoice fraud.

“Fraudsters are experts at taking advantage of changing situations to commit fraud, and with two retail banks leaving the Irish market and hundreds of thousands of personal and businesses customers moving bank accounts, FraudSMART members are anticipating that we may see a rise in impersonation fraud attempts which will be based around the process of verifying and updating bank account details.”

In response, FraudSMART has just launched an information and awareness campaign urging consumers and businesses to be on high alert for fake text messages, emails, or calls pretending to come from trusted organisations.

Remember, too, we’re not just talking about banks. Fraudulent messages also purport to come from power companies, couriers, online marketplaces, streaming services, mobile providers, and even your employer.

But right now, it’s mostly about the banks.

Ms Davenport said: “We are warning consumers to be on the lookout for text messages that flag fraud on your bank account or impending cancellation of your salary, standing orders, or direct debits to utilities, and which then go on to ask for personal information or account details. We are aware that fraudsters have recently started to follow up these texts with a phone call from a number that appears to be your bank.”

These text messages typically say something like: ‘Attempts have been made on your card at 11.28. Please secure account.’

Alternatively, you might get something like: ‘Parcel will be delivered today. Track your parcel at...’ This will be followed by a web address. Again, never click on links sent by text message. They will never come from legitimate businesses.

These fraudsters don’t just stick to text messages. The scam phone call is also popular.

As with text messages and emails, the caller will pretend to be from a reputable company. During the conversation, they will try to trick you into giving them personal, financial or security information, or into making a money transfer.

They’ll ask you to ‘verify’, ‘update’, or ‘reactivate’ your account, and will often convey a sense of urgency: You need to act now, or else! They don’t want to give you time to do any research or investigate the issue.

Firms, too, are vulnerable in the current environment.

No fewer than 70,000 businesses are due to move accounts in the coming weeks, which is why the threat of invoice fraud is higher than ever.

FraudSMART has seen over 100 cases of invoice fraud this year, with some businesses suffering losses of up to €50,000.

This is basically another form of impersonation. A fraudster calls a business, pretending to be one of their suppliers. They tell the business that they’re changing their bank and give new account details. Then, when the real supplier sends in an invoice, the fraudster is the one who gets paid.

Ms Davenport said that the fraudster could even be posing as a member of your own firm.

“With so many businesses legitimately changing their account details, this provides the perfect opportunity for criminals to take advantage.

“As we launch our campaign, our key message to consumers and businesses is to take your time, never click on links in texts or emails, and verify any communication, text, or email, and do so by using contact details you have on file, the back of your bank card or via a website directly.”

For further information and a host of fraud advice, check out www.fraudsmart.ie