Fraud Week: An Garda Síochána advise the public to be extra vigilant when investing in cryptocurrencies
- 67% increase in reports of investment fraud in 2021 compared to the previous year (234 reports of investment fraud in 2021 amounting to €12.4 million, up from 140 reports in 2020 amounting to €8 million)
- Almost 50% of victims of investment fraud are aged over 55 (63% male, 37% female)
- Victims are ordinary people - if it sounds too good to be true then it probably is
An Garda Síochána is asking members of the public to do their homework before making any investments, given the sustained rise in investment fraud involving cryptocurrency. At a time when the cost of living is on the rise, these sophisticated criminals are making the most of online opportunities such as increased traffic and social media adverts to target more victims. Virtual currencies are high risk and unregulated in this country, so you should always check the regulatory status of the company you are dealing with before parting with any of your money.
What is investment fraud?
Investment fraud is where criminals posing as investment managers fool someone into investing money in schemes and projects that do not exist. At the moment, most investment fraud involves cryptocurrency with fake investment managers, cloned websites or unregulated companies promising ‘once in a lifetime opportunities’ with fast and enormous returns. Sometimes, they may even appear to be endorsed by reputable business people or celebrities, but without their knowledge. In some cases, victims are persuaded to download links that allow the criminals to access their computers and empty their bank accounts.
How to identify an investment fraud?
- In most cases, huge and quick returns on investment in cryptocurrencies are offered as a hook by fake websites/companies
- The fraudulent website is hosted outside of the EU or the company is registered in a country far away where there is no regulation or come back.
- Pop-up ads that appear on your social media feed for cryptocurrency investments often claim to be endorsed by well-known business people or celebrities
- The fraudulent websites can be very slick and professional-looking; you may even be sent impressive graphs, charts or projections showing how your investment is doing and encouraged to part with even more of your money
- You are being rushed into accepting an offer – the ‘investment manager’ says you will live to regret it if you don’t invest right now.
How to avoid investment fraud?
- Don’t invest until you get reliable financial and legal advice
- Check the regulatory status of the company on the Central Bank of Ireland’s website
- Don’t respond to pop-up/social media ads or messages with wild 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 websites you don’t know (is the site HTTPS secured even?)
- NEVER allow anyone remote access to your computer (or download Apps that give others control of your computer)
- NEVER EVER disclose personal data or bank account passwords or codes.
Speaking at today’s briefing Detective Superintendent Michael Cryan of the Garda National Economic Crime Bureau said:
“People are always going to be attracted to promises of big profits. That’s why these sophisticated, fraudulent investments in cryptocurrency are on the rise – up 67% from 2020 with many other cases not reported owing to embarrassment. Between 2019 and 2021, over €24 million was stolen through investment fraud from ordinary people all over the country, many losing their pensions or life savings. Virtual currencies are high risk and not regulated – if something goes wrong there are no consumer protections in Ireland or services from the Financial Services Ombudsman. Our advice is to do your homework before making any investments - always seek professional financial and legal advice, only use regulated entities, and be wary of too good to be true offers – they usually are.”
Further information on investment fraud, and other fraud types, can be found on www.garda.ie and www.fraudSMART.ie. An Garda Síochána is advising members of the public who believe they are a victim of investment fraud or think their personal information has been compromised, to contact any Garda Station and report the crime.
