Millions of euro in counterfeit and stolen bank drafts and cheques were circulated in the State by criminal gangs this year, according to Bank of Ireland.
Some 910 incidents of fraud, involving drafts with a total value of €21 million, were reported to the bank by the end of November this year.
Draft fraud has increased dramatically over the past two years, a spokesman for Bank of Ireland's fraud prevention unit said.
In 2001, 24 incidents of draft fraud were reported to the bank, the same number as in 2002. However, last year the number of reported fake drafts rose to 382. With the increase in transactions over the Christmas season, it is feared that that figure could rise to more than 1,000 this year.
"I would estimate that there would be around 4,000 cases of fraudulent drafts and cheques reported to Irish banks. Every bank gets 'pasted' in this fashion, we're not unique. Even if only 1 or 2 per cent were successfully passed, that's a huge amount of money," the spokesman said.
The Bankers' Federation of Ireland (IBF) yesterday published notices in national newspapers warning consumers and retailers of the danger of stolen and counterfeit bank drafts. Goods and cash refunds should not be released until the recipient of the draft is satisfied that it has been paid, particularly with once-off transactions involving strangers.
The notice has not been published because of any rise in draft or cheque fraud, the IBF said, but because of the increase in transactions over Christmas.
