The Statistics
International Fraud Week is the perfect opportunity to refresh on what we know about scams, the impact they can have and importantly how we can recognise and react to them in real time.
A reminder of the challenge and impact of fraud is reflected in the significant losses, and therefore successes for the criminals behind the activity.
Across Ireland €96m was lost to fraud in 2023 (a 16% increase on 2022), and a staggering £1.1bn for the same period in the UK so it remains a major problem and a significant threat.
Fraudster Techniques/Typologies
Fraud typologies continue to vary but the common denominator in how successful an attempt can be, comes down to the awareness of the potential victim. Therefore, education is key!
The ‘smishing’ technique (SMS text fraud) has been a major contributor towards the numbers highlighted above, with victims socially engineered into clicking on links, inadvertently downloading malware, sharing/confirming personal information or online financials account details as a result of a text they’ve received. Just as it would via traditional ‘phishing’, through email.
The ability of a fraudster to spoof a telephone number from a reputable organisation (Credit Union, Bank, Tax Authority, Law Enforcement) has been a really effective way of attempting to authenticate their request – and it works so often. We need to be less trusting when we receive a request that looks legitimate.
With the 95% of fraud initiating online and considering how much time is now spent on our devices, the need for awareness should be a recurring theme. Authorised Push Payment (APP) fraud (when someone sends money from one account to another for goods/services that are ultimately never received) is a classic typology. This has been around for years, but proving even more lucrative. APP fraud has developed recently with examples of fraudsters selling concert tickets, even foreign holidays or Air BnB accommodation that either do not exist or the legitimate owner has not sanctioned, but the fraudster is sent the money upfront.
Reminders on APP fraud are always so important when approaching heavy online traffic periods such as ‘Black Friday’ and the lead up to Christmas. If it looks too good to be true, it generally is! Keep that in mind over the coming weeks.
We’re delighted to be working in collaboration with PAYAC services to deliver a Fraud Awareness Week SMS campaign. Every day for 7 days, we will send out SMS text messages to Current Account customers’ members highlighting different types of fraud and how to avoid them.
What to do in the aftermath of a scam
Making contact with the Credit Union on a number known to be correct, should be the first action a victim takes. Full disclosure of the incident will enable the Credit Union to consider the best course of actions and to initiate the process of retrieving lost funds.
A review should be undertaken of all passwords and online credentials to ensure nothing further can be compromised. Escalation of the incident to agencies referenced below would be recommended.
Is there any support for victims?
Yes. But what is important is that any potential fraud is reported at the earliest opportunity so that Credit Unions, Banks and Law Enforcement can react as soon as possible. See below the breakdown of escalation / support agencies for the UK and Ireland.
Ireland
Competition & Consumer Protection Commission
UK
The Fraud Outlook into 2025
As Credit Unions prepare for the adoption of SEPA Instant Payments in 2025, the fraud landscape is expected to evolve significantly, presenting both challenges and opportunities to double down on it with built-in controls. Real-time payment systems bring speed and convenience, transforming how members access and transfer funds. However, they also introduce new vulnerabilities by drastically reducing the time available to detect, intercept and react to potentially fraudulent transactions.
Given the lived in experience in the UK of faster payments, Irish Payment Service Providers (PSPs), like Credit Unions should be prepared for a surge in potentially fraudulent activity such as with APP scams. These scams are likely to become more prevalent, given the reduced friction in payment processes. SEPA Instant Payments will require the deployment of robust, real-time monitoring systems capable of analysing transactions within milliseconds to identify anomalies or unusual behaviour. Those controls are built into the project, that Wellington IT is supporting the integration of, and these controls will be fundamental pillars to the success of this transformative initiative for the Irish market.
Advanced technologies like Artificial Intelligence (AI) and machine learning will also play a pivotal role in detecting emerging fraud patterns, adapting quickly to new tactics, and minimising false positives that could disrupt legitimate transactions.
Collaboration across the financial sector will also become increasingly important. Credit Unions must work closely with regulators, other PSPs, and industry peers to share intelligence about emerging threats and coordinate responses to large-scale fraud attempts. Member education will be another critical component; empowering members with knowledge about recognising scams and safeguarding their accounts can significantly reduce fraud exposure at the individual level.
The integration of SEPA Instant Payments also provides an opportunity for Credit Unions to strengthen their reputation as secure and innovative financial institutions. By adopting proactive measures, such as implementing two-factor authentication, biometric verification, and transaction limits, Credit Unions can build member confidence in this cutting edge transactional space. Maintaining member trust in this fast-moving environment will depend on a balanced approach—leveraging the benefits of instant payments while implementing state-of-the-art security measures to protect against an evolving fraud landscape.
Looking ahead, the success of Credit Unions in adapting to SEPA Instant Payments will hinge on their ability to innovate and stay ahead of fraudsters. This requires not only investment in advanced technologies but also a commitment to ongoing staff training, regulatory compliance, and fostering a culture of vigilance. Adopting that outlook, Credit Unions can turn potential fraud challenges into an opportunity to deliver secure, seamless payment experiences for their members.