The Central Bank published some new data in a report about fraudulent payments in January this year which did not get the full attention it deserves. The data on payment fraud reveals that Irish fraud rates are below the EU averages except for card payments. Most fraudulent payments are sent to fraudsters’ accounts located outside Ireland with fraudulent credit transfers being the most popular method.
Fraudsters continually adopt new ways to exploit digital systems and bypass security measures, costing businesses and individuals millions of euros every year. Common methods include phishing, where fake emails or text messages trick people into revealing personal information, psychological manipulation of the payer to send money via social networks or impersonating as a trusted party, making unauthorised payments using lost or stolen cards.
The report shows that fraudulent payments on the rise but fraud rates remains low. The rate of fraud in Ireland as a share of all transactions is low. By value, the rate is 0.001%, and by volume, the rate is 0.01%, with the latter being equivalent to 1 in 10,000 payment transactions impacted by fraud.
The total value of fraudulent payments rose by 26% in 2023, increasing to €126 million from €100 million in 2022. Credit transfers and card payments accounted for the majority of all fraud.
As per the published data on payment statistics, credit transfers are the largest in terms of value and often used for large value payments compared with other payment methods in Ireland. This also applies to fraudulent payments.
Approximately 60% of the value of fraud, amounting to €70 million in 2023, was made through credit transfer.
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