New figures from FraudSMART and led by Banking and Payments Federation Ireland (BPFI) show total losses reached €18.9m, with the average loss per incident exceeding €22,000.
Most cases relate to invoice redirection scams where fraudsters pose as legitimate suppliers and request changes to bank details, leading businesses to unknowingly transfer payments to fraudulent accounts.
The report noted another method by scammers which was CEO impersonation scams, which involve emails appearing to come from senior executives requesting urgent payments or sensitive information from employees.
A survey conducted by ISME members found 67pc of SMEs were targeted by a financial scam in the last 12 months while 78pc received an unexpected or urgent request that raised suspicion. Most attempted scams are coming by email, followed by phone calls and text s.
The survey noted how fraudsters are increasingly combining these channels to create a greater sense of urgency and to come across more sincere to victims.
Around 80pc of SMEs that received suspicious requests said they independently verified them before taking action.
Employees in particular, are often the ones targeted by fraudsters
However, 53pc of businesses lack specific guidelines or training programmes for staff, leaving them more exposed to potential attacks, the survey said.
“These findings are a stark reminder that fraud is now a day?to?day business risk for SMEs. More than three quarters (77pc) of ISME members who took part in the survey, believe that financial fraud is a moderate or serious threat to their business,” said Neil McDonnell, the CEO of ISME.
“Falling victim to scams is not only financially damaging but can fundamentally undermine trust within a business. Employees in particular, are often the ones targeted by fraudsters and therefore need to be supported to play a key role in fraud prevention.”
Tánaiste Simon Harris said small businesses tend to be the most vulnerable to such scams.
“Over 92pc of SMEs are what we call micro enterprises, employing less than 10 people, and while these businesses demonstrate remarkable resilience in the face of global uncertainty, unfortunately, they are often the most vulnerable to business-related fraud because they often have fewer resources and lower financial buffers to withstand losses,” he 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.”
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