There can’t be many people in Ireland who have not been contacted by scammers in one form or another over the last couple of years.
While many scams are barely credible, people are decieved every single day and the “blight” – as it has been described by the Commission for Communications Regulation (ComReg) – costs Irish consumers and businesses hundreds of millions of euro each year.
Unless something radical is done, as much as €1.5 billion could be stolen from people by scammers before the end of the decade.
Earlier this summer, ComReg started a public consultation on a suite of measures aimed at reducing the damage caused by scam calls and texts. The context it noted was that the “total quantifiable harm” from nuisance communications was “conservatively estimated at over €300 million each year”.
On the Money: the personal finance newsletter from The Irish Times
I don’t want my neighbour to install an air-con unit encroaching on my garden. What can I do?
‘Extravagance? I get stressed by how much my kids will pay for a pair of runners’
‘I honestly have no idea how I’m going to save my restaurant from going under’
Breaking down the numbers, it said about €115 million was lost as a result of scam text messages and €187 million due to scam calls.
ComReg reported that in 2022 alone there were in the region of 365,000 cases of fraudulent scams, with as many as 89 million annoying/irritating communications and 31 million distressing communications recorded.
In excess of 5,000 businesses were victims of fraud after receiving scam calls or texts.
“These scams are a blight on society and cause significant financial and economic damage to all sectors of society including consumers, business and public bodies,” ComReg said.
“Scams also diminish the trust placed by consumers and businesses in calls and SMS,” it added, and noted that the “prevalence of scam calls and SMS has increased in recent years, with the vast majority of mobile users reporting to have received scam calls or SMS”.
Steps that might be taken to limit the impact of these scams could see telecoms operators implement technical interventions and more rigorous call blocking systems to stop fraudsters abroad spoofing Irish numbers to make scam voice calls.
ComReg has also called for a “protected number list” to be introduced to stop fraudsters using numbers not yet in service or allocated to a telecoms operator.
Operators should also take steps to allow businesses and organisations to secure their numbers and introduce an SMS Sender ID Protection Registry to allow them to register an SMS Sender ID while blocking those not on the register, it is also proposed.
Advanced voice firewalls to block spam calls wherever they originate and enhanced scam filters designed to block scam SMS messages and protect against future, more sophisticated scams could also be introduced.
While these measures would not be cheap, ComReg has stressed the benefits to society for each €1 spent reducing the scam calls and texts would be substantial and should bring €50 in economic and social benefit.
“The SMS scam filter is an essential measure to prevent criminals from attempting to defraud Irish customers because, like the voice firewall, it is a dynamic intervention that reacts to the latest scams,” ComReg said.
Before people can start to breathe easy, however, much needs to be done. The period of consultation ended on July 28th and if anything of substance is to emerge a culture shift from the telecoms and financial sectors is needed.
Whatever changes are required cannot come soon enough.
Here are some of the scams being used to target people right now.
1. The Crypto scam: An unsolicited call comes telling the would-be victim that they have some crypto-currency locked in a virtual vault somewhere. To release the tens of thousands of euro, the victim needs to do one of two things. They are asked to lodge money in the crypto-account (which – at the risk of stating the obvious – does not exist). Alternatively they are asked to give the caller access to their computers which can see their bank accounts drained in double quick time. Other crypto scams see people contacted with all manner of promises of large returns on crypto investments made. The promised returns never materialise.
2. The romance scam: Victims are lured into “relationships” with fake people. Trust is established over a period of weeks or months after which victims are asked for money so their “new love” can visit them or invest on their behalf, or help a sick family member. Once the victim’s money is gone, so is the criminal.
3. The fake rental: This scam is particularly popular at this time of year with thousands of students searching for accommodation. Criminals have also been exploiting the housing crisis to get desperate people to pay deposits for rental properties that do not exist.
4. Caller ID spoofing: Calls come from what look like real Irish numbers carrying warnings about compromised PPS numbers and imminent arrests unless certain actions are taken. They might also promise tax back or other financial incentives. The calls are bogus.
5. The fake invoice scam: The scam artists send emails to businesses claiming to be genuine suppliers that the target does legitimate business with. The emails contain requests to update bank account details on record for the supplier and give a new bank account. The account is controlled by the criminals. The next time a legitimate invoice falls due, the money is sent to the criminal’s account.
6. The smishing scam: Text messages that look like they have come from banks or credit unions ask people to follow a link or submit some personal details on the basis that suspicious activity has been noted on a particular account. The messages are fake.
7. The bogus delivery scam: Messages from a delivery company alert you that a delivery has been unsuccessfully attempted. Or a message might land warning that customs charges have been attached to a delivery which is being held until you pay up. The text message will come with a link to a site that is dressed up to look legitimate. It isn’t. The messages are fake.
8. The missed call scam: You miss a call from an unknown number and when you return it, you get through to an answering service that is actually a premium-rate service. You pay a heavy price for the call.
9. The streaming scam: A mail arrives telling you there is a problem with your Netflix subscription and to update payment details on their site. You follow the link and the site looks legitimate but is part of an elaborate scam.
10. The blackmail scam: A mail arrives saying a person has been monitoring your activities online and has a video of you doing something you might not want the rest of the world to see. They promise to share that video with the world unless you pay them. To add credibility they may include details of a password only you know. The password was almost certainly compromised in a hack of a company you have an account with, with some of your details sold on the dark web.
Ways to stay safe
- If it sounds too good to be true, it is too good to be true. Always.
- No one is ever going to contact you with a get-rich scheme, unless it is a scam.
- Ignore all unsolicited email requests, text messages or phone calls seeking personal information.
- Never follow links embedded in emails or text messages.
- If you are inputting personal details, make sure the web address starts with https (the “s” stands for secure) as opposed to just http.
- Never open attachments from people you don’t know.
- Don’t accept random friend requests on Facebook.
- Never grant access to your information to apps which you are not familiar with.
- Always give yourself time to think before you respond. Speed is the currency of the criminal. They will tell you of the need to act fast. Ignore them.
- Be suspicious. If anyone you don’t know or have never met asks you for personal information, consider that a red flag and think long and hard before exposing yourself in any way.
You can contact us at OnTheMoney@irishtimes.com with personal finance questions you would like to see us address. If you missed last week’s newsletter, you can read it here.
