Direct Debit Scam

Warning! New 'Direct Debit' text and phone scam on the rise

FraudSMART is warning the public of a new text message and phone scam in which victims are convinced their bank account has been hacked and persuaded to move their money to a so-called 'safe account' in order to protect it.

Consumers are being warned to be extra vigilant of unsolicited text messages and phone calls and to be aware that banks or Credit Unions will never ask customers to transfer funds to keep their account safe.

Victims receive a text message impersonating their bank, alerting them to a ‘new’ direct debit

How the Scam Works

Niamh Davenport, Head of Financial Crime at BPFI, explains how the scam unfolds: “This recent scam detected by FraudSMART members is particularly deceptive. Victims are being conned out of between €6-€8k on average. It begins with a convincing text message, appearing to be from a bank, alerting them to a 'new' direct debit on their account."

The message advises calling a phone number if the direct debit is unfamiliar. "This mimics legitimate alerts from banks, but crucially, banks never include phone numbers in text messages,” Davenport warns.

If the customer calls the number in the text message they end up speaking directly to the fraudster

Ms Davenport continued: “If the victim calls the number in the text message they are told that they are speaking to the bank’s fraud department but are in fact speaking directly to the fraudster. They are advised that their account is at risk and, in order to protect their money, they have to transfer their funds and close their account. They are asked to open their banking app or desktop account while on the call, set up a new payee or ‘safe account’ using an IBAN provided by the fraudster and transfer their money into this new account, which the fraudster in fact controls. This is often followed by a text message ‘confirming’ that the new IBAN will be processed in 24 hours, along with details of the amount transferred and a fake ‘lodgement reference’, in order to further persuade the victim that it’s legitimate and also delay detection.”

Ms Davenport added: “These fraudsters can be very skilled at convincing people and gaining our trust, using a variety of psychological techniques known as ‘social engineering’, so it’s possible for any of us to be caught out if we’re not on alert. The most important thing to remember is to be very cautious of unexpected texts or phone calls and if in any doubt, ignore the text message or hang up the call, and phone your bank immediately using the number on the back of your bank card.”

How to protect yourself from phone and text scams:

1. Do not reply to unsolicited text messages or provide personal or financial information.
2. Do not use phone numbers provided within the text of a text message. Contact your bank using the number on the back of your debit / credit card.
3. Do not click on a link from unsolicited text messages – remember your bank will never send you a link in a text message.
4. If someone is pressurising you on the phone to take urgent action, hang up and call the number on the bank of your debit / credit card.
5. Never give away personal information, bank card payment details, bank account details or security details such as your PIN or online password to anyone.

 Remember:

Your Bank or Credit Union  will never ask you to transfer money from your account to a ‘safe account’ or any other kind of account. Contact your bank and the Gardaí immediately, if you think you have responded to a scam text message or phone call.

Help keep your family and friends safe this winter

Anyone can be target to this type of scam and new types of scams and frauds are continuously emerging that are increasingly more complex and convincing.

Share this alert with your family and friends so that they too can stay safe and encourage them to sign up for the FraudSMART fraud alerts which we issue when a new scam is in circulation.