Warning: Everyone is at risk of 'extremely sophisticated' social media and online fraud

Fraudsters are using increasingly sophisticated methods to seek to scam consumers through social media, websites and phonecalls, the Central Bank has warned.

These fraudsters are targeting more, and a broader range, of Irish consumers.

The Central Bank warned that social media, fake websites and copying of legitimate websites are used by fraudsters to scam consumers.

This calls for an increased level of awareness on the part of consumers, as well as a consistent level of vigilance to meet the threat.

The Central Bank has this week launched an information campaign to help Irish consumers avoid personal financial scams. The Central Bank has created the ‘SAFE’ test, which gives consumers four practical steps to take when considering buying a financial product or dealing with a firm through a website, social media, an unsolicited phone call, email, text or pop up message.  The test consists of the following steps:

1. Stop. Think and ask yourself challenging questions about what you are being offered

2. Assess. Make sure the firm is legitimate

3. Factcheck. Seek advice to ensure that the product or service is legitimate

4. Expose and report. If you have any concerns, contact the Central Bank.

Scam operations take different forms; advance fee fraud, fake loan providers, ‘clones’ of well-known personal finance service providers (like banks), fake investments businesses and many more.

Deputy Governor at the Central Bank of Ireland Derville Rowland said: “Unfortunately nobody is immune to the threat posed by financial fraud. The proliferation of activity by fraudsters in the online world, and the move into social media in particular, means that every generation and demographic is at risk.

“Advances in technology have created great opportunities for consumers, but have also given fraudsters increased access to innocent victims. Some of the scams we have seen reported to us in the Central Bank are extremely sophisticated and convincing. We hope that providing consumers with some simple practical steps they can take will go some way to combating these callous criminals.”

Last week, the Central Bank warned consumers to beware of any reputed firm that looks for an upfront fee from you. Advance fee fraud is an especially insidious scam as it targets people looking for high cost credit, which is often used by people managing budgeting or other financial challenges.

Deputy Governor Rowland advised, “Always take your time when buying investment products or applying for a loan. Never act on the spot – especially if a provider puts you under pressure for a ‘deal’ – this is always an indicator you are not dealing with a legitimate service provider. Remember that if something seems too good to be true – it probably is.

“Always use the SAFE test – the Central Bank has published a helpful video informing you what steps to take. If you feel like you’ve encountered a criminal – report them. Call An Garda Síochána and call the Central Bank, we can help”.

The Central Bank has information online at www.centralbank.ie/scams and consumers can call us on 0818 681 681 or report an unauthorised firm online here.