Over €17 million lost by SMEs through email-related scams in the last two years – FraudSMART
- Invoice redirection and CEO impersonation scams remain top threats to businesses with average losses of €11,500
- 68% of SMEs targeted by a scam in the last 12 months according to new survey, but 31% do not have specific fraud awareness guidelines and training programmes in place
- FraudSMART launches new SME fraud awareness campaign, in partnership with ISME and spearheaded by business owner and former Irish rugby international Tommy Bowe
Thursday 10th April – Irish small and medium enterprises (SMEs) lost over €17 million (€17.4m) in the last two years through email-related scams, according to new figures published today by FraudSMART, the fraud awareness initiative led by Banking & Payments Federation Ireland (BPFI). The figures come as FraudSMART partners with the Irish SME Association (ISME) to launch a new SME fraud awareness campaign, spearheaded by business owner and former Irish rugby international Tommy Bowe.
Invoice redirection and CEO impersonation scams remain top threats to businesses
Speaking on today’s figures and outlining the types of scams targeted at SMEs, Niamh Davenport, Head of Financial Crime, BPFI commented: “The level of scams targeting Irish businesses is very concerning with FraudSMART members seeing average losses in the region of €11,500. These scams are not only financially damaging but can also seriously undermine trust within a business. The majority of cases we are seeing are invoice-redirection scams, with losses of €15.7 million between January 2023 and December 2024. These scams often start with what appears to be a legitimate email from a supplier known to the business, but which has been hacked or closely copied by fraudsters. They usually don’t request any payment upfront but claim to have moved to a new bank account and ask for their payment details to be updated for future invoices. When a legitimate invoice is issued by the supplier at a later date, the business ends up paying it into the ‘new account’ controlled by the fraudster. CEO impersonation scams, which accounted for losses of €1.7 million during the same period, can be even more deceptive where fraudsters impersonate a company’s senior executive in order to convince an employee to disclose sensitive information or make an unauthorised financial transaction.”
More than two thirds of SMEs targeted with scams in the last 12 months but almost a third have no fraud awareness guidelines and training programmes in place for employees
Ms Davenport added: “According to a recent survey we conducted with ISME, more than two-thirds (68%) of SMEs have been targeted with scams within the past twelve months and 89% of these businesses report being targeted through email. However, while the vast majority of businesses have some security measures in place, such as verification processes for new bank account details (94%), almost a third (31%) of businesses do not have specific fraud awareness guidelines and training programmes for employees.”
Neil McDonnell, CEO of ISME, stated: “These findings emphasise just how exposed SMEs are to financial fraud. This is not a marginal issue – it’s a major business risk. While it’s encouraging to see that many are putting some fraud prevention measures in place, we need to ensure this becomes standard across all small businesses. Employees in particular are often the ones targeted by fraudsters and therefore have a key role to play at the frontline of fraud prevention. I urge all SMEs to put training in place to ensure their workforce, at every level of the business, are constantly aware of current fraud risks and how to avoid falling victim to scammers. FraudSMART provides a free guide with information and tips on business fraud and that’s a good place to start.”
FraudSMART launches new SME fraud awareness campaign, in partnership with ISME and spearheaded by business owner and former Irish rugby international Tommy Bowe
The latest findings come as FraudSMART launches a new fraud awareness campaign, in partnership with ISME, spotlighting the latest scams being targeted at businesses and offering practical fraud prevention tips. The campaign is being spearheaded by business owner and former Irish rugby international Tommy Bowe, who will ‘coach’ SMEs at the launch of the campaign today in Dublin and through a series of short videos being released through social media over the coming weeks.
Speaking on the launch Mr Bowe, commented: “I understand the daily demands of running a small business in Ireland, especially in the current economic climate, but fraud prevention measures cannot be put on the long finger. We are particularly vulnerable because we often have fewer resources and lower financial buffers to withstand losses, so I am urging business owners to stop and think about the processes that they have in place. It doesn’t have to be complicated – a few simple checks can make all the difference. In our business, we have a policy that no large payment gets approved without a verbal confirmation. That might mean picking up the phone to a colleague or calling the supplier directly using a trusted number – just taking that extra step to speak to someone can stop a scam in its tracks.”
FraudSMART tips to protect your business:
- Policies and procedures: Ensure a verification process is in place for requests to change supplier bank account details.
- Dual authorisation: Ensure that two people from the business are required to complete a third-party payment electronically.
- Fraud awareness and training: Ensure staff are given appropriate training on email-related fraud / phishing emails.
- Invoice checking: Review invoices thoroughly and ensure there are no irregularities.
- Updated operating systems: Ensure that the latest updates for your computer and mobile operating systems are up-to-date and set them to automatically update
- Think before you post: Avoid sharing too much personal information on social media.
Further information is available at FraudSMART.ie. Businesses can also download a free copy of the FraudSMART ‘Protect your business from fraud’ guide.
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Contact: Fiona Murphy, Head of Communications, 087 9740046, fiona.murphy@bpfi.ie or Jillian Heffernan, Director of Communications, 087 9016880, jillian.heffernan@bpfi.ie.
*Survey conducted by FraudSMART and ISME with ISME members in March 2025 with 53 responses.*
