Consumers under 45-years-old are more likely to fall victim to financial fraud than older people, according to Permanent TSB’s latest quarterly research on consumer attitudes and perceptions.
In advance of Black Friday, one of the busiest online shopping days of the year, and the run-in to Christmas, the research found three quarters of consumers have experienced an attempted financial fraud and over a quarter (27 per cent) have been victims.
The over-45 age group makes up 52 per cent of the adult population and accounts for 37 per cent of victims, while the over-65 age group makes up 18 per cent of the population and 11 per cent of victims.
Financial fraud is more likely to be experienced by people living in Dublin than in other parts of the country, according to the research.
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Older people are twice as likely as young people to check their bank accounts every week to guard against fraudulent transactions. Four in five of the over-65s said said they are vigilant in this regard compared with 40 per cent of 18-24 year olds.
The research also suggested fraudsters are more likely to seek amounts less than €500 rather than larger sums.
Almost two thirds (64 per cent) of incidents involve amounts of €500 or less; while 15 per cent involve amounts of €501-€1,000; 12 per cent amounts of €1,001-€5,000; and 10 per cent amounts greater than €5,000.
The most common types of financial fraud are “vishing”, which involves phone calls and voice messages, “smishing”, which involves text messages, and “phishing”, which involves emails.
Other common scams relate to lottery wins, inheritance, investment, so-called “romance fraud”, where an individual is persuaded to give a fraudster money under the pretext of establishing a relationship, as well as ticket sales or property rental.
Despite being one of the less common types of financial fraud, the research found romance fraud is the most lucrative form of fraud, with about 60 per cent of cases relating to amounts of more than €500 – almost double the rate of other types of fraud.
Permanent TSB head of corporate affairs Leontia Fannin said financial fraud is a “significant threat” and that it is often targeted at groups “that may think they are less vulnerable”.
“Awareness of financial fraud is strong but scams are getting more sophisticated and we need to continue to be on our guard,” she said.
“The best way to combat financial fraud is by combining the anti-fraud measures employed by banks with greater public awareness of the many different types of fraud. Always trust your instinct and call your bank if something feels wrong.”
The research also found that despite the resilience of the economy at a national level, consumer sentiment remains downbeat in light of the ongoing cost of living challenges that have emerged in recent months.
Almost two thirds of people said they feel worse off than this time last year, which was up from 50 per cent in August, with 55 per cent of people expecting to be worse off next year, up from 47 per cent. Just 13 per cent expect to be better off, down from 21 per cent.
Seven out of 10 consumers expect the economic situation to deteriorate over the next year, with less than 10 per cent expecting it to improve.
Some 83 per cent said the cost of living is among the top three most pressing issues to be addressed, far head of other issues such as housing (47 per cent), homelessness (45 per cent), healthcare (44 per cent), and affordable rents (33 per cent).
Covid-19 has largely fallen away as an issue on people’s minds, with 9 per cent citing it as a key concern now, versus 33 per cent a year ago.
