Central Bank of Ireland urges safeguards amid rising payment fraud

Mary-Elizabeth McMunn, Deputy Governor of the Central Bank of Ireland, has called on payment firms to implement stronger safeguards for tokenized services. This warning follows a significant increase in fraudulent payment activity among Irish-resident providers.

In 2025, the value of fraudulent payments reached €179.04 million, up from €140.80 million in 2024. Fraudulent e-money payments specifically rose by 57.7% to €40.42 million, while losses from payment fraud increased by 45.6% to €112.7 million. Despite the rise in value and losses, the frequency of fraud remains relatively low, affecting approximately one in every 10,000 transactions.

McMunn identified the protection of customer funds, operational resilience, and fraud prevention as critical priorities as firms integrate distributed ledger technology, tokenization, and artificial intelligence. She also emphasized the need for board-level oversight regarding technology risks and recovery planning to prevent system fragmentation.

These developments coincide with a shifting consumer landscape in Ireland. Recent surveys indicate a growing preference for digital methods, with nearly half of respondents under 35 identifying mobile wallets as their primary payment method and a majority preferring digital bank transfers.