Allied Irish Bank is advising customers to stay alert to fraud, especially during the festive season when many are taking time off. The bank has identified the five most common fraud methods encountered in 2024.
5. Money Mules: Criminals exploit individuals’ accounts to transfer stolen funds, hiding their crimes. Individuals are often deceived into becoming money mules, aiding criminals in laundering money from various illegal activities such as online scams, drug trafficking, and human trafficking.
4. Purchase Scams: Fraudsters create counterfeit websites that closely resemble legitimate ones, offering enticing discounts to trick unsuspecting shoppers. AIB recommends that customers verify online retailers, especially during busy shopping seasons like Christmas and New Year, by checking for a padlock symbol in the address bar, looking for negative reviews, and avoiding direct bank transfers.
3. Investment Fraud: Social media is a common platform for criminals advertising seemingly lucrative investments, utilizing sophisticated technology to appear credible. However, such high-return opportunities are often scams. AIB advises individuals to research investment providers, ensure they are regulated, and seek independent financial advice.
2. Phone Call Fraud: Scammers often call to extract personal and financial information by impersonating legitimate companies. They may spoof genuine phone numbers and use tactics like offering to resolve technical issues or promising refunds. Some may attempt to take over the victim’s device.
1. Text Message Fraud: Smishing, or fraudulent text messages posing as reputable banks or service providers, is the most prevalent form of fraud, representing 94% of cases reported from January to October 2024. These texts are often followed by phone calls from the supposed bank, sometimes displaying the bank’s actual number.
It’s crucial to remember that a legitimate bank will never:
- Ask for security codes via text message, push notifications, or from a card reader.
- Send someone to collect physical cards, PINs, or security details.
- Request a selfie through a mobile app after contact via phone or text.
Mary McHale, AIB’s head of financial crime, emphasized the importance of vigilance, stating: "We urge customers not to let their guard down, especially during the holiday season when online shopping is prevalent. AIB will never request customers to log into a website or call a number provided in a text. If you receive such requests, please end the conversation immediately."
She reassured that in cases where customers have fallen prey to scams, AIB will handle the situations sensitively on a case-by-case basis. The bank is committed to protecting its customers from fraud and continuously invests in enhancing fraud monitoring systems. They actively collaborate with industry stakeholders, including telecommunications companies, the Banking and Payments Federation of Ireland (BPFI), and law enforcement, to detect and address fraud trends effectively.