Scammers increasingly targeting Irish workers nearing retirement
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Latest figures from fraud awareness initiative FraudSmart show investment fraud jumped by 25.6% in the first half of 2023. During that period, victims were conned out of a total of €8.6m.
Niamh Davenport is head of financial crime at the Banking and Payments Federation Ireland (BPFI), which operates FraudSmart. She is concerned at the rise in increasingly complex investment scams and says consumers need to protect themselves from scammers.
"This follows a notable spike seen by our members in more highly convincing types of these scams, which are now using the names and branding of well-recognised banks and investment firms to draw in their victims.”
The particular type of scam is called "authorised push payment" fraud. It happens when a fraudster tricks a person or business into sending money directly from their bank account to an account which the criminal controls.
“In many of these investment scam, fraudsters hide behind websites, including product or investment comparison websites, which can appear to be legitimate," Ms Davenport said.
"Consumers looking to invest submit their details for more information and the fraudsters then call or follow up with an email, often including what looks like a high-end brochure.
"Once the victim has authorised the payment and 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.”
Ms Davenport said these scams have been targeting the over 55s in particular. Investment amounts usually start at about €5,000, but there have been plenty of instances where many multiples of this figure have been stolen. Some victims have been scammed out of hundreds of thousands of euro.
In one incident, a woman in her 50s who had received an inheritance, invested €70,000 in what appeared to be a legitimate scheme. She did her own background research on the company and the ‘agent’ she was dealing with through a search engine and felt confident it was an authentic product and so went ahead with the payment.
“Unfortunately, it turned out to be an elaborate scam. This example highlights the level of sophistication involved in some of these operations, as large networks of criminals are creating increasingly convincing and deceptive ways of tricking consumers,” Ms Davenport said.
FraudSmart is calling on the public to stay informed, alert and secure. While banks deploy a range of measures to protect customers, fraudsters are increasingly targeting businesses and consumers directly, so it important to know how to protect ourselves.
In particular, be cautious of adverts online and on social media platforms, even if they are paid or sponsored ads using a familiar brand or business name.
Promises of high returns on investment websites or online adverts often lead people to share personal and financial information that can then be used for targeted scams. Always pause for thought and contact the company independently to verify the details.
And if you have shared your bank details and realise you are dealing with scammers, report it to your bank and the gardaí as soon as possible.
Romance scams — one of the most insidious forms of fraud — are also on the rise. Victims of these types of scam believe they have met their perfect match online, but the other person is in fact a scammer using a fake profile to build the relationship. They slowly gain the victim’s trust with a view to eventually asking them for money.
The Competition and Consumer Protection Commission (CCPC) says it is important to be alert for fraudsters who use online dating platforms to scam and swindle those looking for love.
A dating scam is particularly difficult as it plays on your emotions. The scammer forms an emotional connection with you, wins over your trust and builds up your expectation of a long-term relationship.
Single people who might be lonely and are eager to meet that special someone can be taken advantage of in this way. Once they have built up trust, the scammer will make their move, asking for financial help.
A scam artist will set up a fake profile on a legitimate dating site and pretend to be somebody they’re not. Their photos will typically be fake.
There are a variety of red flags that will help you to spot if someone is genuine or not.
If they promise to meet you without making a genuine effort to do so, if they ask lots of questions but reveal very little personal information themselves or if they want to quickly move the conversation from the dating site to another channel, chances are you are dealing with a scammer.
You will find too that scammers will avoid video calls, and before long, they will have some kind of sob story on the go: they have a sick parent in hospital or they themselves need life-saving medical treatment. Inevitably, they will need cash, and that is where you come in.
The CCPC advises to never send any intimate photos of yourself to somebody you have met on a dating site. Scammers extort money from their victims by threatening to humiliate them and post these images across social media.
You should never feel too embarrassed to report your experience. If you believe you have fallen victim to a romance scam and have handed over money, contact your bank immediately. They can advise you and put a hold on your account.
Report any potential dating scam to your local Garda station. And remember, the sooner you report, the less likely that these people can scam anyone else.
There are ways to keep yourself safe while dating online:
- Stop and think: Does this opportunity sound too good to be true? If so, it probably is;
- Take your time: It is important to note there are very few legitimate investment opportunities that require you to hand over or transfer money immediately;
- Research thoroughly: Check the individual and firm for qualifications, credentials, reputation and history. The Central Bank Consumer Hub is a good place to start;
- Verify the information: Check all information with a trusted third party such as a legal/financial professional and consult family and close friends.