Fears regarding the increasing sophistication of scams are escalating among the public, who are particularly concerned that the rise in artificial intelligence (AI) could leave them more susceptible to such attacks, according to new findings.
The research, conducted by PTSB, emphasised the importance individuals still place on human interaction, particularly regarding their finances, as opposed to engaging with automated machines or chatbots. The study further revealed how ongoing financial stress, resulting from the cost of living crisis, continues to significantly affect consumers.
PTSB’s Reflecting Ireland report, released on Wednesday, indicated a decrease in the number of those who believe they’d know how to react if they were targeted in online criminal activity. Alarmingly, 72% fear that AI advancements could lead to more complex financial fraud scenarios.
The study showed that less than a quarter of the population feel at ease with the prospect of financial advice being generated by AI, especially when it pertains to substantial financial commitments such as mortgages and investments.
The results showed a slight dip in those reporting attempted financial fraud from 75% in 2022’s autumn to 71% currently. Yet, the instance of successful scams via skimmed card data, fraudulent voice calls (‘vishing’) and deceptive text messages (‘smishing’) has risen during the same timeframe.
Out of those affected by financial fraud, 27% fell for these tricks, with the figure rising to over one third among younger adults. Elderly are more prone to fall for card skimming frauds, while individuals aged between 25-54 are in the highest-risk category for romance scams.
The report showed a decline in the confidence of individuals knowing how to respond correctly to financial fraud, with current figures sitting at 46%, compared to 56% in late 2022.
Shopping fraud is a worry for 60% of people, leading to a quarter of respondents opting for physical stores over online platforms to lower their risk. Over one third prefer using cash to card payments for the same reason.
Of those who participated in the study, a whopping 95% utilise digital banking services, going up to 100% for the 18-24 age group.
The propensity to always utilise mobile payments, like Google Pay or Apple Pay, or digital wallets is higher among under-35s.
The vast majority of respondents, over 80%, believe cash still holds relevance for certain transactions, although predominantly for smaller amounts and informal situations, such as tipping, giving children’s pocket money, or spending on social outings.
A third of the population, representing 34 per cent, regard living expenses as their prime concern. This is followed by issues relating to immigration at 14 percent and housing costs at 13 per cent. The economic climate is expected to remain constant in the coming year, a sentiment shared by the same percentage as those who feel the economy is on a positive trajectory, which stands at 30 per cent. Conversely, more than half of the participants, 56 per cent to be precise, are pessimistic about the economy.
Only a minor proportion, less than 20 per cent, report a better financial situation than the previous year, while over a quarter of those surveyed anticipate they will be financially worse off in the forthcoming year.
Leontia Fannin of PTSB highlights the importance of peoples’ opinions on financial fraud and their banking habits as they serve as key markers of consumer sentiment. The latest report from PTSB Reflecting Ireland exposes some noteworthy trends, although there’s an extensive use of digital banking, the majority are apprehensive about fraud potentially being influenced by AI. The preference for human assistance over technological alternatives remains prevalent to the majority particularly for significant financial decisions.
Fannin also emphasizes the significance of main societal issues in the run-up to the local and European elections. Predominantly, cost of living continues to be a major issue for many, trailed by issues related to immigration and housing costs.