The Bank of Ireland has raised alarms over a significant and troubling rise in investment fraud, marking it as the most concerning trend in the evolving landscape of scam tactics. The bank’s latest fraud data for the first half of 2024 reveals a staggering 76% increase in investment fraud attempts compared to the same period in 2023.
The surge in these fraudulent activities is primarily driven by schemes initiated on social media platforms. These scams typically involve fraudsters reaching out to potential victims with personalized phone calls and messages, promising unrealistically high returns on quick investments. In many cases, these criminals even pose as fake ‘recovery firms’ that target individuals who have previously fallen victim to other scams, offering to help them recover their losses.
Nicola Sadlier, Head of Fraud at the Bank of Ireland, expressed deep concern over the sharp increase in investment fraud attempts, stating, “The growth in investment fraud attempts is the most concerning trend we are seeing at the moment. The level of highly personalized targeting of consumers continues to grow year on year, and everyone needs to be on their guard. When it comes to this serious criminal activity, there is no room for complacency. Being alert to the ‘red flags’—including too good to be true returns and pressure to act quickly—is vital.”
In response to the growing threat, the Bank of Ireland announced in March an investment of €50 million aimed at enhancing customer fraud prevention and protection measures. This initiative is part of the bank’s broader strategy to combat the rising tide of financial scams. Recent figures from the bank underscore the urgency of this investment, with data showing that a startling 94% of people have been targeted by fraudsters in the past 12 months.
The bank urges customers to remain vigilant and to question any investment opportunities that seem too good to be true. As fraud tactics become increasingly sophisticated, the Bank of Ireland emphasizes that education and awareness are the best defenses against falling prey to these schemes.
Key Red Flags to Watch For:
- Unrealistic Returns: Be wary of promises of high returns with little to no risk.
- Urgency: Scammers often pressure victims to act quickly, discouraging them from taking the time to think through their decisions.
- Unsolicited Contact: If you receive an unexpected call or message about an investment opportunity, be cautious.
The Bank of Ireland continues to work closely with law enforcement and regulatory bodies to tackle this growing threat and protect its customers from financial harm. Customers are encouraged to report any suspicious activity immediately and to seek advice before making any investment decisions.
As the landscape of financial fraud continues to evolve, the Bank of Ireland remains committed to ensuring that customers are equipped with the knowledge and tools necessary to protect themselves from these dangerous scams.