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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.

Capital: Reykjavik
Region: Europe
Language: Icelandic
Currency: ISK (kr)
Cost of living: Expensive (index 85)
Emergency: 112

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)

critical

Criminals 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.

How to spot it
  • - 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
What to do: NEVER approve an Auðkenni request you did not personally initiate. Always type government and bank URLs directly into your browser — never click links in SMS or email. If you believe you have been phished, contact your bank immediately and report to the Icelandic Police (Lögreglan) at logreglan.is. Report online fraud at island.is/en/report-on-attempted-fraud.

Rental scam (fake listings)

critical

Iceland'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.

How to spot it
  • - 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
What to do: NEVER pay any deposit without viewing the property in person and verifying the landlord's identity. Use leigulisti.is and leiga.is rather than social media. Check the property address on Google Street View. Pay any deposit to an Icelandic bank account matching the lease contract. Report suspected scams to Lögreglan (logreglan.is) and the platform.

Investment and cryptocurrency scams

critical

Online 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.

How to spot it
  • - 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
What to do: Verify any investment firm at cb.is/financial-supervision before transferring money. If not listed, do not invest. Report investment fraud to Seðlabanki Íslands (cb.is/financial-supervision) and Lögreglan (logreglan.is).

Fake job offers targeting immigrants

warning

Fake 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.

How to spot it
  • - 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
What to do: Legitimate Icelandic employers handle work permit applications through Vinnumálastofnun (the Directorate of Labour) at no cost to the worker. Never pay to secure a job. Verify any company at Fyrirtækjaskrá (skra.is — the company registry). Report suspected scams to Lögreglan and Vinnumálastofnun.

Tourist overcharging and hidden rental car fees

warning

While 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.

How to spot it
  • - 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
What to do: Read every line of the rental contract before signing. Take date-stamped photos of the car from all angles before departure. Use Iceland's Consumer Agency (Neytendastofa at neytendastofa.is) to file formal complaints about misleading practices. Check Tripadvisor and Google reviews before booking any specific operator.

Fake volcano evacuation and emergency alert hoaxes

warning

With 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.

How to spot it
  • - 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
What to do: For volcanic and natural disasters, ONLY trust Almannavarnir.is (Civil Protection and Emergency Management), vedur.is (Icelandic Met Office), and official RÚV (ruv.is) broadcasts. Download the Almannavarnir official app for push notifications. Do not share unverified emergency content.

Romance scam

warning

Criminals 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.

How to spot it
  • - 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)
What to do: Reverse-image-search all profile photos. Never send money to someone you have not met in person and independently verified. Report to Lögreglan (logreglan.is) and, for financial components, to Seðlabanki Íslands (cb.is/financial-supervision).

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.