According to AIB’s Head of Financial Crime, Mary McHale, scammers are employing increasingly advanced techniques to impersonate the bank convincingly. This scam sees criminals leveraging existing text conversations to insert their malicious content, which can make the fraudulent messages appear more credible.

The bank has noticed a troubling increase in incidents involving this method, prompting urgent advisories to all its clients. AIB emphasizes the critical nature of vigilance in the face of such threats and reminds customers that the security of their banking information should be a paramount concern.

How the Scam Works

Fraudsters start by hijacking genuine banking conversation threads. This is achieved by using sophisticated software that can mimic AIB’s text message format. The scam messages often include urgent requests for sensitive information, such as banking login credentials, passcodes, or PINs, under the guise of verifying the customer’s identity or addressing a supposed security threat to their account.

Mary McHale highlighted the cunning nature of this strategy: “By inserting messages into an existing thread, the scammer gains an air of legitimacy previously hard to achieve. Customers are more likely to trust a message that appears in a thread with a history of genuine communication from their bank.”

Identifying and Avoiding the Scam

AIB has provided crucial advice for identifying these deceitful tactics. The bank will never ask customers to log into their accounts through a link provided in a text message or initiate any contact asking for sensitive personal information through insecure platforms. Customers are urged to be suspicious of any text that directs them to unknown websites or asks them to dial unfamiliar phone numbers.

“If you receive a message asking you to share your personal banking details or to log into your account through a provided link, it’s a scam,” McHale advised. She further recommends ending all communications immediately with anyone purporting to be from AIB who asks for sensitive information in this manner.

What to Do If You Suspect Fraud

AIB is committed to supporting victims of fraud on a case-by-case basis, dealing with each incident with understanding and prompt action. Customers who believe they might have fallen prey to this scam should contact the bank immediately. Additionally, reporting the incident to the Gardaí (Irish Police) can help prevent further such frauds and assist in the crackdown on financial crime.

Stay Safe: Banking Security Tips

• Always verify the authenticity of requests for sensitive information by contacting the bank directly using a verified phone number.
• Be cautious of messages that push you to act urgently or threaten account closure or suspension.
• Regularly update your banking passwords and consider enabling two-factor authentication for an added layer of security.

AIB remains dedicated to safeguarding its customers’ financial security and continues to enhance its defences against the ever-evolving threat of financial scams.

The bank is reducing its five-year green mortgage rate by 0.25 percentage points, bringing it down to 3.2% for properties with a Building Energy Rating (BER) of B3 or higher. Additionally, AIB is cutting its four-year fixed rate for mortgages of €250,000 and above by 0.25 points, making it available from 3.7%. These new rates will be available to both new and existing customers starting tomorrow.

AIB’s Managing Director of Retail Banking, Geraldine Casey, emphasised the importance of offering a variety of choices, value, and convenience for customers seeking to buy their new home. She noted that this latest cut aligns with AIB’s strategy to support customers in making more sustainable choices.

The rate reductions come in the wake of the European Central Bank’s (ECB) recent decision to lower its key lending rates for the second time this year. This has prompted other lenders, including Bank of Ireland, PTSB, and Avant Money, to also reduce their rates.

Broker Michael Dowling of Dowling Financial welcomed the rate cuts, highlighting that the reduction on AIB’s green rate will save borrowers approximately €13 a month for every €100,000 borrowed. AIB has also extended its approval in principle period from six to 12 months, giving customers more time to find and buy their new home.

The latest cuts are part of AIB’s broader strategy to remain competitive in the market. Martina Hennessy, Managing Director of broker Doddl.ie, pointed out that AIB’s non-green rate offerings had become higher than those of competitors, prompting the bank to make these reductions. She added that the cuts could save customers around €500 a year.

AIB’s latest rate cuts are seen as a positive development for the mortgage market, potentially leading to further reductions from other lenders and providing significant savings for borrowers.

Selfie Check simplifies the banking process by using advanced facial biometrics for identity verification. This cutting-edge technology scans and measures distinct facial features to ensure the security of transactions. Recognized as one of the most secure authentication methods, facial biometrics could soon become the standard for online banking.

To utilize this feature, AIB advises customers to snap their verification selfie in a well-lit area against a neutral backdrop, without any background distractions such as windows. Phones should be held upright, around 30 cm from the face, making sure nothing covers the facial features.

Currently, this service is available exclusively to AIB customers who are over 16 years of age and residing in the Republic of Ireland. While this new technology promises a smoother banking experience, AIB still recommends that users of its internet banking service keep their card readers handy for now.

As AIB plans to extend ‘Selfie Check’ to other banking services, this innovative approach could set a new trend in how financial transactions are handled across the industry.

Starting later this year, homeowners will have the opportunity to borrow between €5,000 and €75,000 at interest rates starting as low as 3 percent. This move follows the earlier involvement of Permanent TSB in the Home Energy Upgrade Loan Scheme, launched in April 2024 with an initial fund of €500 million. The scheme is expected to expand further, with several credit unions anticipated to join in the coming weeks.

Ministers Applaud New Loan Options

The addition of AIB and Bank of Ireland to the retrofitting scheme has been warmly welcomed by Environment Minister Eamon Ryan and Finance Minister Michael McGrath. Both ministers believe that the increased competition in the market will offer homeowners more options and better value for their investment in home energy efficiency.

Minister Ryan expressed his enthusiasm, stating, “The increased competition in the market means homeowners will now have more choice and greater value. Low-cost just got lower, which is good news for householders. I am delighted AIB and Bank of Ireland are now participating and very much welcome the extremely competitive rates starting from 3 percent, which are the best green loan rates available on the market.”

Benefits of Home Retrofitting

Home retrofitting involves upgrading the energy efficiency of existing homes, which can lead to significant reductions in energy consumption and costs. Common retrofitting measures include installing better insulation, upgrading heating systems, and incorporating renewable energy sources such as solar panels. These improvements not only make homes more comfortable but also contribute to environmental sustainability by reducing carbon emissions.

The availability of low-interest loans through the Home Energy Upgrade Loan Scheme makes these upgrades more accessible to a wider range of homeowners. By spreading the cost of retrofitting over several years with affordable repayment terms, homeowners can invest in their properties without facing prohibitive upfront costs.

Market Impact and Future Prospects

The involvement of AIB and Bank of Ireland is expected to stimulate the market for home energy efficiency upgrades. With more financial institutions offering competitive loan products, homeowners are likely to find it easier to secure funding for their retrofitting projects. This increased market activity can also drive innovation and cost reductions in the retrofitting industry, further benefiting consumers.

Finance Minister Michael McGrath highlighted the potential economic benefits of the scheme, noting that it can create jobs and stimulate local economies. “The Home Energy Upgrade Loan Scheme is not just about making homes warmer and more energy-efficient; it’s also about creating employment opportunities and supporting local businesses. The participation of major banks like AIB and Bank of Ireland will help ensure the success of this initiative,” he said.

How Homeowners Can Apply

Homeowners interested in applying for the low-cost retrofitting loans can contact AIB, Bank of Ireland, or Permanent TSB for more information on eligibility criteria and application processes. It is advisable to obtain multiple quotes for retrofitting work to ensure the best value for money. Additionally, homeowners may wish to consult with energy advisors to identify the most effective upgrades for their specific properties.

Conclusion

The expansion of the Home Energy Upgrade Loan Scheme to include AIB and Bank of Ireland marks a significant step forward in Ireland’s efforts to improve home energy efficiency. With lower interest rates and increased competition in the market, homeowners now have better opportunities to invest in sustainable home improvements. This initiative not only benefits individual households but also supports broader environmental and economic goals, making it a win-win for all involved.

What This Means for Borrowers

With this rate cut, AIB’s four-year fixed mortgage rate is now one of the most attractive options available. For a typical mortgage of €250,000, this reduction translates to an annual saving of approximately €500 for customers. This can provide significant financial relief for homeowners and those looking to purchase a new home.

A Response to Market Competition

AIB’s decision to lower its mortgage rates is seen as a response to the increasing competition in the mortgage market. Other banks and lenders have also been adjusting their rates to attract more customers. By offering more competitive rates, AIB aims to retain its current customers and attract new ones.

Positive Impact on Housing Market

This rate reduction is expected to have a positive impact on the housing market. Lower mortgage rates can make home buying more accessible to a larger number of people. It can also stimulate the market by encouraging more property purchases, which can be beneficial for the overall economy.

AIB’s Commitment to Customers

AIB has stated that this rate cut is part of their ongoing commitment to provide value and support to their customers. The bank continues to review its offerings to ensure they are meeting the needs of their customers in a dynamic market.

Summary

AIB has cut its four-year fixed mortgage rate by 0.25%, leading to significant savings for borrowers. This move is aimed at enhancing affordability and staying competitive in a crowded mortgage market. It is expected to positively influence the housing market by making home loans more accessible.

“AIB is making a payment of €100 to former Ulster Bank tracker mortgage customers as a gesture of goodwill, to acknowledge any instances during their transfer where the customers’ experience fell short of our standards,” a spokesman confirmed, underlining the bank’s commitment to customer satisfaction.

The bank also assured that no customer would be financially disadvantaged due to any errors made during the transfer. “This is in addition to ensuring that no customer is out of pocket as a result of any error on our part. We look forward to continuing to support these customers in the years ahead,” the spokesman added.

The total cost of these goodwill payments amounts to €3.3 million. AIB acquired approximately €4 billion worth of tracker home loans, covering 33,000 accounts, from Ulster Bank last July. This acquisition represents 80 percent of the mortgages AIB had agreed to purchase from the UK-owned lender, which is withdrawing from the Irish market. The remaining €1 billion of loans are scheduled to transfer in the second half of this year.

In the immediate aftermath of the migration, AIB was compelled to issue apologies on two occasions last August due to problems experienced by some customers. Initially, the bank apologized to a group of tracker mortgage customers who had been mistakenly notified by letter of a sharper-than-expected increase in their monthly repayments from October. AIB clarified that the letter was incorrect, and those larger repayment increases would not occur.

Subsequently, the bank had to apologize to around 40 customers whose direct debits were cancelled following the transfer of mortgages from Ulster Bank.

Tracker mortgage holders have benefited from the lowest rates in the Irish market for over a decade, until the European Central Bank (ECB) began increasing rates almost two years ago. The ECB’s key lending rate, which tracker loans are pegged to, stood at zero from March 2016 until July 2022. The rate peaked at 4.5 percent last September but was reduced by a quarter of a percentage point last week.