Reports of investment fraud up 77% as criminals exploit cost-of-living crisis
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Reports of investment fraud have risen by 77% so far this year, with criminals exploiting the ongoing cost-of-living crisis to scam victims out of tens of thousands of euro, gardaí have said.
Investment fraud relates to instances where criminals pose as investment managers in a bid to fool someone into investing into projects which do not exist.
Gardaí said criminals have exploited the high cost-of-living by cloning websites and issuing bogus online advertisements promising would-be investors "once in a lifetime" opportunities that supposedly offer quick and substantial financial returns.
Often, fraudsters will state that these opportunities are time-sensitive, pressuring their targets into parting with their money.
According to new statistics, some €18.6m was stolen from members of the public by the end of Q3 of this year, with the average amount taken amounting to €33,431.
On average, almost 70% of victims of investment fraud are aged over 40. Just under two-thirds (65%) are men.
Speaking at a briefing on Wednesday, Detective Superintendent Michael Cryan of the Garda National Economic Crime Bureau (GNECB) said people were always going to be attracted to promises of big profits.
"That is why these sophisticated, fraudulent investments are on the rise, worldwide, not just in Ireland," he said.
"The victims in most investment frauds are ordinary people who lose their life savings and retirement nest eggs."
Det Supt Cryan said that, between 2021 and 2022, €25m was stolen from Irish people by investment fraudsters.
Gardaí issued the following advice as regards financial investment
- Do not invest until you get reliable financial and legal advice
- Check the regulatory status of the company via the Central Bank of Ireland webpage
- Do not respond to pop-up/social media ads or messages with claims about investment returns
- Ignore unsolicited approaches or cold calls about investments
- Beware of celebrity-endorsed investments – they may not even know that their name is being used
- Be wary of fake wallets for storing your cryptocurrency - these can be scams for malware to infect or control your computer
- Do not click on links for webpages that you don’t know and always check that the site is HTTPS secured
- Never allow anyone remote access to your computer or download apps that can give others control of your computer
- Never disclose personal data or bank account passwords or codes.
Det Supt Cryan urged people to "be wary where the return being offered sounds too good to be true or where there is a degree of urgency or you are being offered a once in a lifetime opportunity."
"Always seek professional advice when investing whether in cryptocurrency or any kind of investment product," he said.
"Check the Central Bank website and ensure the company you are dealing with is regulated and that it is not a cloned website you are on."