'Don't be a victim of online fraud' - one-in-five online shoppers scammed over past year

One-in-five online shoppers in Ireland were scammed over the past year, with more than 10% of them losing more than €500, new research has found.

Led by Banking and Payments Federation Ireland (BPFI), the FraudSmart study also found that a significant number of online shoppers admitted to not taking basic security precautions.

Almost 350,000 fraudulent payment transactions were made in 2023, 7.7% more than in 2022 and, according to the research, gross losses from APP electronic credit transfer fraud jumped by 82.2% year-on-year to €18.1 million - the highest level recorded since 2019.

Commenting on the findings, Niamh Davenport, Head of Financial Crime, BPFI said: "Almost 50% of online shoppers confess to clicking on links from social media or pop-up ads instead of independently visiting and checking the website of the company. With more than one in ten shoppers who have lost money in an online scam, reporting losses of over €500, we are calling on people to be extra vigilant as the Christmas shopping season ramps up, especially with Cyber Monday deals flooding inboxes and social media feeds.”

Don't be a victim of online fraud. ❌ Keep up to date on the knowledge and tools to protect your online and mobile banking accounts. Learn about the latest scams, best practices for secure transactions, and how to report suspicious activity at https://t.co/HglnkCEjk8 pic.twitter.com/E8nz5JGvQe

— FraudSMART (@FraudSMART) October 31, 2024

Given the findings, FraudSMART has launched a new portal, Scamchecker.ie, to provide shoppers with an easy way to check the legitimacy of websites or links before they make a purchase.

"Scamchecker.ie offers shoppers valuable information to help make an informed decision before making a purchase online. In combination with other precautions, it’s a simple but effective tool that can help avoid getting stung online this Christmas period. The launch is also being supported by a national radio, digital and social media advertising campaign to raise awareness amongst the public,” Ms Davenport added.

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FraudSmart has also shared its top tips to avoid being scammed online this Christmas

• Look for a padlock symbol beside the website address, which indicates the site is secure.
• Ensure the web address begins with ‘https’.
• Avoid using public Wi-Fi when making online payments; always switch to a personal network like 3G or 4G.
• Avoid clicking on links from social media or pop-up ads; instead, type the website address directly into your browser.
• Beware of deals that seem too good to be true – they usually are.
• Stick to well-known websites or retailers that you are familiar with.
• Use Scamchecker.ie to verify the legitimacy of a website before making a purchase.