The Bank of Ireland has outlined important fraud prevention initiatives in the new Programme for Government.
These commitments involve the establishment of a Shared Fraud Database, exploring the possibility of an SMS scam filter and ensuring that online platforms only promote financial products from companies regulated by the appropriate national authority.
Susan Russell, CEO of Retail Ireland at Bank of Ireland, commented: “Prevention really is better than cure when it comes to fraud as Irish consumers and businesses are more exposed than their counterparts in other English-speaking countries.
“Bank of Ireland had proposed a number of policy changes to prevent fraudsters from targeting Irish consumers in the first instance. We welcome the inclusion of these commitments in the Programme for Government and we will continue to advocate for their speedy delivery by the new Government.”
As noted above, a key commitment is the launch of a Shared Fraud Database, which aims to enable financial institutions, utility companies and payment providers to share fraud-related information.
Currently, these entities are restricted from sharing such details, but a shared fraud database in Ireland would allow for quicker prevention of customer losses. This initiative would require regulatory support under the Data Protection Act 2018.
It also advocates for national and EU legislation to ensure online platforms only advertise financial products from companies regulated by the relevant national authorities.
The bank believes amendments to national and European laws should require online platforms to promote products only from authorised financial service providers within the EU. This proposal is currently under review as part of the EU’s Payments Services Regulation.
Lastly, there is an aim to explore an SMS scam filter. ComReg, the general communications regulator for Ireland, has noted that the country is lagging behind other English-speaking countries in not having such a filter.
Several EU member states have already implemented SMS filters, and the bank feels introducing one in Ireland should be a legislative priority.
Last year was widely referred to as the “year of fraud” by financial experts, as the sophistication of AI technology introduced new challenges. In response, financial institutions in the UK rushed to implement new rules and regulations to combat these growing threats.
A major focus in the UK was reimbursement, with the Payments Systems Regulator (PSR) introducing a mandatory reimbursement requirement for APP fraud last October.
Similarly, Ireland faced its own fraud challenges, with the Bank of Ireland reporting that fraudsters stole nearly €100m through scams and frauds in 2023. However, as highlighted by Russell, it believes that prevention should be the bigger priority moving forward.
Russell concluded: “Between 2024 and 2025, Bank of Ireland will spend €50m to protect our customers from fraud. This includes resourcing a dedicated fraud team which works 24/7 to catch fraud attempts, and which our customers can call anytime, day or night.
“We’re also investing in technology, and run an always-on, high-profile consumer awareness programme. Criminals constantly evolve, however, and we all need to work together on this serious problem.”