FRAUDSTERS ARE INCREASINGLY following up scam emails with a phone call or text message to make their requests seem more urgent and believable, new figures show.

The tactic is part of a wider rise in scams targeting small businesses, according to the Banking & Payments Federation Ireland’s (BPFI’s) Fraudsmart initiative.

Irish SMEs lost almost €19 million to email-related scams over the past two years, with invoice redirection and so-called CEO impersonation among the most common frauds.

In many cases, businesses receive what looks like a legitimate email from a supplier asking them to update bank details. The request is often followed up with a call or text, adding pressure to the business to act quickly.

When a real invoice arrives later, the payment ends up going to an account controlled by scammers.

Companies impacted by scams suffered average losses of more than €22,000.

While email remains the main route (88.4% of businesses scammed said it was done via email), over half (51.2%) of businesses reported being targeted by phone, and almost as many (48.8%) by text message.

A recent survey carried out with ISME found that 67% of small and medium-sized businesses had been targeted by a scam in the past year, while most said they had received suspicious or urgent requests.

Despite this, more than half of SMEs said they do not have specific fraud awareness training or guidelines in place for staff.

Niamh Davenport, the BPFI’s Head of Financial Crime, described the scale of the findings as “deeply concerning”.

“Of concern is that more than half (53%) of businesses report not having fraud awareness guidelines and training in place for employees, leaving their business exposed,” Davenport added.

Tánaiste Simon Harris launched a new Fraudsmart awareness campaign today, aimed at helping businesses spot and prevent scams.

Speaking at the launch, he said small businesses are particularly vulnerable to fraud.

“Unfortunately, they are often the most vulnerable to business-related fraud because they often have fewer resources and lower financial buffers to withstand losses,” Harris said.

“It is vitally important that business owners and employees are aware of the risks that fraudsters pose and put the necessary measures in place.”