Iceland (IS)
Iceland is a North Atlantic volcanic island nation of extraordinary natural beauty — home to geysers, glaciers, lava fields, midnight sun, the Northern Lights, and some of the world's most active volcanoes.
Scam Warnings
Common scams targeting expats in Iceland.
Iceland has very low crime rates overall, but online fraud has been rising sharply: cybercriminals defrauded Icelanders of ISK 500 million in 2025 alone, and reports of fraud doubled year-on-year. Three golden rules: never approve an Auðkenni authentication request you did not personally initiate, never pay a rental deposit without viewing the property in person, and only use investment firms regulated by Seðlabanki Íslands (Central Bank of Iceland).
Auðkenni and electronic ID phishing (rafræn skilríki)
criticalCriminals send fake SMS or emails impersonating Skatturinn (the tax authority), Ísland.is, Landsbankinn, Íslandsbanki, Arion banki, or other services, directing you to convincing fake login pages. Fraudulent messages frequently impersonate Veitur, the post office, and tax authorities. When you authenticate with Auðkenni on a phishing page, criminals capture your session and can access your bank account, tax returns, or government records. CERT-IS warned specifically about fake Ísland.is pages in 2025, and Landsbankinn issued a warning about Skatturinn phishing in January 2025.
- - Fake URLs that closely resemble island.is, skatturinn.is, or your bank's website but contain extra characters or different suffixes
- - Unexpected SMS or email asking you to log in urgently to verify your account or collect a refund
- - An Auðkenni notification appears on your phone for an action you did not initiate
- - Pressure tactics: "Your account will be suspended", "Tax refund waiting", "Overdue payment"
- - Message contains spelling or grammar errors unusual for official Icelandic communications
Rental scam (fake listings)
criticalIceland's extreme housing shortage makes renters desperate, creating ideal conditions for advance-deposit scams. Criminals post fake rental listings on Facebook Marketplace, Leigulisti.is, Leiga.is, and Airbnb-style platforms using stolen property photos. The "landlord" claims to be abroad and requests a deposit of one or two months' rent by bank transfer before any viewing. Iceland's high rents mean deposits of ISK 100,000–300,000 or more can be involved.
- - Rental price significantly below market rate for the described property and location
- - Landlord claims to be abroad (oil worker, doctor, missionary) and cannot meet in person
- - Requests deposit payment before any viewing or lease contract signing
- - Pressure: "Someone else will take it by tomorrow if you don't confirm today"
- - Communication only via WhatsApp or email — no Icelandic phone number provided
- - Request for wire transfer to a foreign (non-Icelandic) bank account
Investment and cryptocurrency scams
criticalOnline investment scams target Iceland's high-income population through social media advertising, fake celebrity or politician endorsements, and WhatsApp groups. These promise exceptional returns on cryptocurrency, forex, or private investments. In 2025, Landsbankinn logged nearly 1,100 fraud-related cases and recovered over ISK 100 million through prompt intervention, indicating the scale of the problem. Older residents are disproportionately targeted.
- - Guaranteed high returns — no legitimate investment can guarantee returns
- - Fake celebrity endorsements promoting a trading platform (check whether the endorsement is authentic)
- - Pressure to invest quickly before the "opportunity closes"
- - Platform not regulated by Seðlabanki Íslands (Central Bank of Iceland) — check cb.is/financial-supervision
- - Difficulty withdrawing money once invested; new fees required to release funds
- - Initial contact comes via unsolicited social media message, dating app, or WhatsApp
Fake job offers targeting immigrants
warningFake job advertisements targeting people seeking work in Iceland are posted on international job sites, Facebook, and LinkedIn. The "employer" requests upfront payment for visa processing fees, training materials, work clothing, or a security deposit. Some schemes are covers for labour trafficking, with victims arriving in Iceland to find conditions very different from what was promised.
- - Job offer requiring any upfront payment for permits, equipment, or registration
- - Vague job description with an unusually high salary for unskilled work
- - Employer offers to process your work permit for a fee paid to them
- - Communication entirely by email or WhatsApp with no verifiable Icelandic company website
- - Request for personal banking information or passport scan at the application stage
Tourist overcharging and hidden rental car fees
warningWhile outright fraud is rare, some rental car companies and tour operators have faced criticism internationally for confusing or undisclosed pricing. Car rental counters may add fees not in the original online quote, push unnecessary insurance add-ons, or not clearly disclose the consequences of different insurance levels for Iceland's unique terrain (gravel roads, river crossings, volcanic ash). This is a civil consumer matter more than a criminal scam, but losses can be significant.
- - Car rental counter adding fees not itemised in the original quote or booking confirmation
- - Very persistent upselling of insurance upgrades at the counter
- - Verbal assurances from counter staff not reflected in the written contract
- - Tour operator not disclosing fuel, accommodation, or admission inclusions clearly before payment
Fake volcano evacuation and emergency alert hoaxes
warningWith ongoing volcanic activity on the Reykjanes Peninsula since 2021, criminals and pranksters have circulated fake evacuation notices and emergency alerts via social media. These cause panic and potentially dangerous movement of people toward or away from hazard zones without any official basis.
- - Evacuation notice or emergency alert circulating only on social media (Facebook, Instagram, TikTok) with no official source
- - No corresponding alert visible on Almannavarnir.is or Veðurstofa Íslands (vedur.is)
- - Alarmist or poorly formatted language inconsistent with the measured tone of official Icelandic authorities
- - Asks you to "share immediately" without linking to any official page
Romance scam
warningCriminals create convincing fake profiles on dating apps and social media, building relationships with Iceland-based users over weeks before requesting money — typically for a medical emergency, a flight to visit you, or an investment opportunity. Older Icelanders and newly arrived expats (who may be socially isolated) are disproportionately targeted. This is sometimes combined with crypto-investment fraud.
- - Online relationship that never meets in person after weeks or months of contact
- - Person claims to be working abroad and is always unavailable for a live video call
- - Declarations of strong affection appear very early in the relationship
- - First request for money comes suddenly — always for an emergency
- - Profile photos appear elsewhere online under a different name (reverse image search)
Reporting
Where to report: Lögreglan (Icelandic Police): logreglan.is | Report online fraud at: island.is/en/report-on-attempted-fraud | Financial fraud and unregulated investment firms: Seðlabanki Íslands (Central Bank of Iceland) at cb.is/financial-supervision | Consumer disputes and misleading practices: Neytendastofa at neytendastofa.is | Volcanic and civil emergency alerts: Almannavarnir.is.
Consumer helpline: Neytendastofa (Consumer Agency): +354 510-1100 (Mon–Fri 09:00–16:00). Online complaint portal: neytendastofa.is. Free service.