Ireland should consider introducing a mandatory reimbursement scheme for people who have been tricked into sending money as part of an online scam, according to a new report.
It was one of the recommendations from the Committee on Finance, Public Expenditure, Public Service Reform and Digitisation, and Taoiseach's Report on the Regulatory Oversight of Neobanks.
Neobanks are digital-only financial technology companies that provide banking services online, with Department of Finance figures showing that 88% of consumers now engage with online banking, with half primarily using mobile apps.
The report said the scheme could be similar to one recently introduced in the UK to help the rising number of people here who are targeted by scammers yearly.
The committee's chairperson Mairéad Farrell said: "The way it works in Britain is that 50% is covered by the financial institution that sends the money and 50% by those that receive the money."
"We need to make sure that people get reimbursements," said the Sinn Féin TD.
The report also called for the National Economic Crime Strategy to be published and enacted without delay, so that gardaí are resourced to deal with the increasing number of highly sophisticated frauds and scams.
The committee stressed that its analysis showed there is the same level of fraud and scams in "bricks and mortar" banks and digital banks.
Ms Farrell warned that scams are becoming "more and more sophisticated" and "more difficult to detect", adding that anyone can be targeted.
She said it is important that people are not embarrassed if they are a victim of a scam and that they report crimes of this nature to the gardaí.
"It's not just a text message from the niece you don't have asking you for money and saying that they are in an emergency. It is actually now becoming so much more sophisticated," she said.
Ms Farrell said she has met people who have lost thousands of euro "that they had saved for deposits for houses, for an engagement ring".
The committee made 12 recommendations in its report, including calling for streamlined reporting and enforcement mechanisms relating to unregulated financial products and firms, cooperation on data exchange and reporting and greater regulation to protect consumers from impacts of speculative investment in cryptocurrencies.
It also said that digital financial services should have to notify the Central Bank and Data Protection Commission if they shift towards advertising or data monetisation.
During the report's launch in Leinster House, members of the committee said it is important that people who are trying to be reimbursed after a scam can talk with a real person instead of a chatbot during a difficult time.
They also called for a dedicated minister or minister for state to directly oversee legislation in this area, as it currently falls between two departments.
Senator Cathal Byrne said politicians will also be playing "catch up" with legislation protection, as "crime is the most innovative sector in the economy".
