BoI initially refused to refund customers who fell for the phishing fraud, but according to press reports the bank has quietly compensated those who lost money in the spam scam.

One customer was rumoured to have lost over EUR49,000, while others reported losses of between EUR5,000 to EUR16,900.

The customers who were conned out of the cash had previously threatened to sue the bank for compensation if the money wasn't returned and a complaint had been made to the Ombudsman for Financial Services.

BoI's move to compensate the victims has led to fears of a surge in phishing activity, as customers fail to take adequate precautions to protect themselves.