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Investment Fraud Advice

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During the last four years alone, almost €60 million was stolen in investment frauds in Ireland, and there is evidence that it is a growing problem. So far this year, investment fraud has already risen by 125% and people need to be aware.

                                                                                               

How does it work?

  • In many cases, the victim searches online for investment opportunities or sees an ad on social media or is contacted by text WhatsApp / phone call. The victim may then click on a link which can end up taking them to a cloned or fake website.  
  • Often, they are then asked to complete basic contact details and are contacted very quickly by someone who sounds very knowledgeable. Fraudsters will offer what sounds like an exceptionally good investment opportunity – typical around 5% – 6% return – once in a lifetime offer - high return promised quickly – no risk – guaranteed return.
  • The fraudster is following a script so will have a prepared reply for any possible questions. They will sound safe – knowledgeable – concerned for the victim – will work to build up rapport and say all the right things.

They will offer to help the victim with the investment – try and get the victim to download an app (like AnyDesk) – this allows the fraudster full control of victim’s computer or phone.

  • The fraudster may provide charts / graphs etc. showing how well the investment is performing and encourage the person to invest more. But eventually, when the victim tries to cash out or asks too many questions or where the fraudster knows they have bled the victim dry, contact is cut off. On occasions, the victim is contacted by so-called recovery experts, who for a fee can get some of the money back – these are usually just an extension of the fraud.

Tactics used and warning signs to look out for:

  • Take your time and listen to your instincts – if something doesn’t feel right, then stop and question it. Remember that if it looks too good to be true, then it probably is.
  • Offers of high return, no risk, short term guaranteed investments do not exist.
  • Do not take investment advice from strangers. Fraudsters can be very convincing and will often create professional and genuine looking company websites. They may send you very legitimate looking brochures or promotional material and their fake products might even appear to be endorsed by celebrities or high-profile names. 
  • Even where a number appears to be an Irish landline it may not be. Calls can be masked or spoofed to look genuine. Sometimes a fraudster will use the name of a legitimate firm (or a very similar name) to make their scam more believable. 
  • No risk/high return investments do not exist
  • Unsolicited contact
  • Fraudsters can be very convincing
  • Fake website/phone numbers

What you should always do:

  • Always take your time with any investment, do your research and get independent professional investment advice before you commit to anything. The Central Bank’s SAFE test is at the following link:

https://www.centralbank.ie/consumer-hub/explainers/how-can-i-avoid-a-financial-services-scam

  • Always check the Central Bank’s register to verify a firm’s details.  A list of unauthorised firms in respect of which the Central Bank has published warning notices can also be found on their website.
  • Ensure you are on a real website and not a cloned or fake one.
  • Do not invest based on social media introductions or ads.
  • Do not engage with people who contact you out of the blue and offer you once in a lifetime opportunity.
  • Be very wary where there is a sense of urgency / must be done now / never get this chance again.
  • Be wary of anyone offering assistance to set up a trading platform or account on your computer. NEVER allow anyone to access your computer or to download software to your devices.
  • If you think that you might have been a victim of an investment scam, do not send any more money to the firm or person in question, even if they say that you need to in order to ‘retrieve’ your initial investment.  Contact your bank, Gardaí and the Central Bank of Ireland as soon as you can.
  • Take your time and listen to your instincts – if something doesn’t feel right then stop and question it.  Remember that if it looks too good to be true, then it probably is.