Gardaí have recorded a 21 per cent increase in cases of investment fraud in the three months to October.
The details have emerged as part of a new campaign aimed at warning people, particularly those aged over 50 who may be seeking to top-up their retirement funds, to be particularly vigilant.
Gardaí said losses can start anywhere from €250 on foot of a crypto fraud. However, for bigger investment scams involving bonds and shares, average individual losses were ranging between €30,000 – €40,000. However, gardaí said, some victims had lost multiples of these amounts.
Fraud Smart, the fraud awareness initiative led by Banking and Payments Federation Ireland (BPFI), on Monday issued a new warning to consumers, particularly those over the age of 50, to be on alert for what it described as highly-convincing investment scams, promising guaranteed and profitable returns.
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It said there had been a marked increase in the use of pop-up adverts online and on social media, featuring fake, AI-generated endorsements from celebrities.
Niamh Davenport, head of financial crime with BPFI, said: “Scammers are continually finding new and complex ways of luring people into investment scams, often targeting people over 50 who may be looking for an opportunity to top up their finances before retirement or, to boost their current pension. In recent months, FraudSMART members have noticed a particular rise in ‘pop-up’ adverts featuring fake, AI-generated endorsements from well-regarded and trusted celebrities. These scams can promote a wide range of supposed investment opportunities, from cryptocurrencies to more traditional options such as bonds or shares.”
She said consumers who clicked on “Learn More” features in the pop-up advert were generally asked to set out their contact details to receive more information.
“This is followed by a call, needless to say not from the featured celebrity, but from a so-called ‘financial adviser’ of an investment company. The ‘adviser’ often uses the names and branding of well-recognised banks and investment firms, with some fraudsters even going so far as to create a ‘copycat’ profile on social media of a real employee or ‘agent’ from an investment firm to convince people of their legitimacy.”
“Once the victim is convinced to make an investment and has authorised the payment, as soon as the money has reached the criminal’s account, the criminal will quickly transfer the money onwards to numerous other accounts, often abroad, where it is then cashed out.”
