FRAUD ALERT: Six Common Types of Financial Fraud in Ireland Exposed

Recent warnings from An Garda Síochána have highlighted the top forms of financial fraud currently targeting Irish citizens, with scammers using a range of tactics to trick victims out of their hard-earned cash. These schemes are designed to deceive and steal, often leaving victims with significant financial losses.

Payment Card Fraud

Payment card fraud involves the use of stolen or counterfeit payment cards to make direct purchases or cash withdrawals. Criminals may also use stolen card data to buy items over the phone or online.

• To avoid falling victim to payment card fraud:
  • Keep your card safe and secure at all times
  • Report lost or stolen cards immediately
  • Sign new cards as soon as they arrive from your bank or card issuer

Invoice Redirection Fraud

In this scam, criminals contact businesses or sellers by email, phone, or text, posing as a legitimate supplier and requesting that their bank account details be changed. The next time an invoice arrives, the payment is sent to an account controlled by the criminal instead of the supplier.

• To avoid falling victim to invoice redirection fraud:
  • Ensure all staff are aware of this type of scam
  • Never respond directly to requests to change bank account details
  • Make a phone call or direct contact with a known contact at the supplier to verify whether the request is legitimate

CEO Fraud

Similar to invoice redirection fraud, CEO fraud targets junior employees in finance departments with an email purporting to be from the Chief Executive Officer. The email may request a substantial payment to be processed immediately, claiming it’s for an urgent deal or matter.

• To prevent falling victim to CEO fraud:
  • Educate staff on the importance of verifying requests of this nature
  • Have clear policies and procedures in place for verifying payment transfers

Phishing

This type of fraud involves criminals making contact by email, pretending to be a reputable company. When you click on the email or attachment, malicious software is downloaded onto your device, allowing the criminal to track online activity and obtain personal or financial information.

• To avoid falling victim to phishing scams:
  • Never open unsolicited emails
  • Respond to suspicious messages seeking personal or financial information
  • Verify any requests independently
  • Be cautious of messages that seem too good to be true

Vishing or Smishing

This type of fraud involves criminals contacting you by phone (vishing) or text (smishing), posing as a legitimate entity and seeking personal, banking, or security information. They may also convince you to make a money transfer or inform you that you’ve won a prize and need to send money to release it.

• To avoid falling victim to vishing or smishing scams:
  • Never give out personal information to unsolicited callers or texters
  • Independently verify any requests for information
  • Be aware that the caller may already have some information about you

Advance Fee Fraud

This type of fraud involves criminals targeting victims with offers of goods, services, or financial gains that do not materialize. These can take many forms, including rental fraud, romance fraud, inheritance fraud, lottery fraud, ticket fraud, ghost broker/car insurance frauds, and investment fraud.

• To avoid falling victim to advance fee fraud:
  • Be cautious of unsolicited offers
  • Ensure you’ve independently verified the identity of the person or company you’re dealing with
  • Never give out personal financial or security information unless you’re satisfied they’re genuine