Mairéad Farrell
Ceist:205. Deputy Mairéad Farrell asked the Tánaiste and Minister for Finance if his attention has been drawn to payment app fraud using digital banks; and if he will make a statement on the matter. [73185/25]
Amharc ar fhreagraThursday, 18 December 2025
Ceisteanna (205)
Freagraí scríofa
I am aware of the issue of payment fraud, including payment fraud that is carried out through online banking apps offered by both traditional and digital banks.
The introduction of strong customer authentication under the second Payment Services Directive reduced unauthorised payment fraud, where a stolen payment instrument such as a card is used to make fraudulent payment transactions.
However, fraudsters have adapted by manipulating victims into authorising fraudulent payments often via online banking apps. This type of fraud is known as impersonation or Authorised Push Payment (APP) fraud and has been on the rise across the EU.
The Instant Payments Regulation introduced an IBAN/name check, which applies to both instant payments and standard credit transfers and is now in effect. This measure reduces payment fraud by alerting the payer when the name of the account they are sending money to does not match the name they have inputted.
In the EU, the Payment Services Regulation has recently reached political agreement. Anti-fraud measures in the regulation include bank liability for losses from impersonation fraud when the bank is impersonated, spending limits, expanded transaction monitoring, fraud information sharing arrangements, and anti-fraud education and awareness.
The compromise agreement includes a requirement for search engines and social media platforms to verify that persons advertising financial services on their platforms have the necessary regulatory authorisation to provide those financial services. This measure is based on a proposal brought forward by Ireland during legislative negotiations. It aims to prevent fraudsters from placing adverts for fake financial services on online platforms.
Domestically, the National Payments Strategy makes several recommendations related to payment fraud. One key outcome has been the establishment of the BPFI anti-fraud forum. The anti-fraud forum fosters cross-sectoral cooperation in fraud prevention between key players such as banks, social media platforms, telecommunications, and regulatory authorities.