People are becoming increasingly worried about their capacity to spot evolving scams and are afraid the growth of artificial intelligence (AI) will make them more vulnerable, new research suggests.
The study from PTSB also points to the value people place on dealing with other people instead of machines or chatbots when it comes to their finances and highlights the enduring impact the cost-of-living crisis is having on consumers’ finances.
According to the bank’s Reflecting Ireland quarterly report published on Wednesday morning, there has been a decline in those who feel confident they would know what to do if targeted by criminal activity online while 72 per cent are concerned AI could lead to more sophisticated financial fraud.
It also indicates that less than one in four people are comfortable with the idea of AI-generated financial advice, particularly when it comes to big decisions around mortgages and investments.
All told, 71 per cent of people reported having experienced attempted financial fraud, down from 75 per cent in autumn 2022.
However, there has been an increase in the number of successful fraud attempts through skimmed card data, “vishing” (fraudulent voice calls) and “smishing” (fraudulent text messages) over the same period.
A total of 27 per cent have fallen victim to financial fraud, rising to more than a third of younger adults.
Older people are more susceptible to card skimming while romance scams are most prevalent against those aged 25-54, the report suggests.
Fewer people now feel confident they would know exactly what to do if targeted by financial fraud, with the percentage standing at 46 per cent now compared with 56 per cent in the autumn of 2022.
Six in 10 people worry about online shopping fraud, with a quarter choosing to shop in-store rather than online to reduce the risk, while more than a third said they choose to pay by cash rather than card to reduce the chance of fraud.
[ Warning over bogus shopping sites as scam sales surgeOpens in new window ]
A total of 95 per cent of those who took part in the study use digital banking services, increasing to 100 per cent for 18-24 year olds.
Under-35s are far more likely to claim they always use mobile payments such as Google Pay or Apple Pay, or digital wallets.
More than 80 per cent believe there is still a role for cash for making certain payments – albeit for lower denominations that are more informal, with tipping, children’s pocket money and nights out being the top three.
The cost of living is still the most important issue for 34 per cent of people. Immigration is the second most important issue on 14 per cent, followed by the price of housing on 13 per cent.
A third of those polled believe the nation’s economic situation will stay the same over the next year; this figure is unchanged compared with 30 per cent saying the economy is on the right track and 56 per cent expressing a negative view.
[ Cost-of-living concerns continue to weigh on more than half of Irish consumersOpens in new window ]
Less than one in five people say they are better off now than this time last year, while 28 per cent expect to be worse off in a year from now.
“Attitudes on financial fraud and the way in which we bank are important indicators of consumer sentiment,” said PTSB’s Leontia Fannin. “It is clear from the latest PTSB Reflecting Ireland report that, even though a majority of people use digital banking services, most people are uneasy about the potential of AI to influence fraud, while bank customers still value human support over any tech solution, especially bigger financial decisions.”
In advance of the local and European elections this week, Ms Fannin also noted that “while the cost of living crisis is still by far the most important societal issue for people, immigration is the second most important issue, followed by housing.”
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