Ireland needs stronger anti-fraud policies to protect consumers

Ireland needs stronger anti-fraud policies to protect consumers

• Bank of Ireland sets out four point plan to increase consumer and business protection
• Plan aims to significantly curb bogus online advertising, allow organisations to track and tackle fraudsters in real time, and block spam texts
• Fraud and scams cost Ireland €100 million in 2023, up 16% on 2022

Against a backdrop of a 76% increase in investment fraud this year, Bank of Ireland has today outlined a four point plan to better protect consumers and businesses from fraud. The plan calls for action in a number of areas where consumers are especially vulnerable to fraud, and where change is urgently required.

The plan includes restricting online advertising for financial products and services to financial services providers that are regulated, the development of a shared fraud database, the introduction of an SMS scam filter, and for a co-ordinated national financial crime strategy to be put in place.

For consumers and businesses, these actions would better protect them from the wave of fraud attempts they are vulnerable to through text messages, social media ads, and search engine results. For corporate Ireland and the State, these actions would allow for the rapid sharing of information to track and tackle fraudsters in real time, and for the national response to this fast-evolving and insidious threat to stay one-step-ahead ahead of the criminals.

Bank of Ireland's four point plan

1. Ensure that online advertising for financial products and services is only permitted by regulated financial service providers. Bank of Ireland believes that national and European legislation should be amended so that online platforms may only publish advertising for financial products and services from companies that are regulated by their competent national authority.
2. Prioritise the introduction of a Shared Fraud Database in Ireland. Financial institutions, utility companies, and payment companies are not allowed to share details of fraud between them. A shared fraud database in Ireland would facilitate the sharing of important fraud related information and would help to prevent customer losses more swiftly.
3. Introduce an SMS scam filter. ComReg has highlighted that Ireland is out of step with other English speaking countries in not having an SMS scam filter. This filter would operate like the spam filters that are applied to email inboxes by detecting and blocking harmful links or content. An SMS filter is already in place in some EU Member States. The introduction of a SMS scam filter in Ireland would require new legislation by the Department of Environment, Climate, and Communications which in our view should be prioritised.
4. Develop a National Financial Crime Strategy. The development of a comprehensive National Financial Crime Strategy, led by the Department of Justice, would help deliver a coordinated approach to the prevention of all types of financial fraud.

Myles O'Grady, CEO of Bank of Ireland, said:

"Financial crime respects no individual, no company, no Government, and no border. It constantly evolves to target us in new ways and to steal money, hurting individuals and society as a whole. That is why we are calling for action, setting out four important proposals to help combat this problem.

"To the end of 2025, Bank of Ireland will spend €50 million to protect our customers from fraud. This includes resourcing a dedicated fraud team which works 24/7 to catch fraud attempts, and which our customers can call anytime, day or night. We're also investing in technology, and run an always-on, high-profile consumer awareness programme. Criminals constantly evolve, however, and we all need to work together on this serious problem."

Paul O'Brien, Bank of Ireland security, said:

"We've seen a 76% increase in investment fraud attempts in the first half of the year. On any given day, you can find ads online supposedly fronted by high-profile politicians, business people, and journalists offering huge returns for small investments. They're fake ads, however, but they're everywhere and they're catching people out. Similarly, consumers face a wave of fake texts, each of which is trying to get them to divulge confidential information.

"Ireland has become an outlier on a number of fronts. This is no doubt attracting even more fraudsters to target Irish consumers and we need swifter policy action to combat this. Other countries in Europe and around the world are taking firm steps to interrupt the criminals and protect the consumer, and Ireland needs to follow suit."

Bank of Ireland has written to the Oireachtas Committee on Finance, Public Expenditure and Reform and political parties in Leinster House to set out the four interventions in detail, and to explain how these actions would significantly enhance consumer and business protection from fraud and financial crime. The Bank has asked political representatives to consider including these four interventions in manifestos that are currently being prepared for the coming General Election.

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