SSIA savers beware: scam artists are coming after your money

SAVERS who are enjoying their SSIA bonuses have been warned to keep their hard-earned cash away from murky pyramid schemes, charity frauds and free holiday offers.

Finance experts fear criminals are working up scams to part savers from their money with so-called “get rich quick” scams on the back of the first wave of generous Government bonuses.

SSIAs (Special Savings Incentive Accounts) were introduced by the Government to encourage people to get into the habit of saving long-term.

Savers were offered generous bonuses if they saved monthly for a period of five years. The first wave of bonuses was paid out last week.

Bank of Ireland fraud expert Gerry Gibson said: “We expected that con artists will do their utmost to capitalise on the surplus money that will enter the economy from SSIAs.

“Many bogus investments are presented as offering short term, low risk, and high value returns; the reality turns out to be long term, high risk and no-value returns.”

He reckoned if cheats managed to get their hands on just 0.1% of the nation’s SSIA bonuses, then they would get away with €16 million.

Now banking experts are advising consumers to check out the credentials of the financial institutions and any firm offering investments.

Mr Gibson said: “There is substantial risk involved and we would advise all SSIA holders to ensure that they don’t become victims of such frauds.

“Anecdotal evidence would suggest fraud is on the increase and it is very likely that fraudsters will be keen to target maturing SSIA funds.

“The key message to the public is to be vigilant and ensure that any funds are invested in a regulated institution.”

Scam schemes

* Pyramid schemes — claim to offer high returns over a short period, for example 5% to 100% per month. They are based primarily on the investor recruiting others to the scheme.

* Investment schemes — offering a range of options are promoted by unlicensed or unauthorised traders, usually offering gold, diamonds, oil, and property for sale. Providers of these schemes tend to be based outside the country and investors are asked to send their monies to an offshore bank.

* Boiler room’ stockbroking scam — overseas companies (usually unauthorised) — make unsolicited contact and offer to sell shares which are ‘about to go through the roof’. The shares are completely worthless and fail to arrive.

* Lottery scams — an email or letter is sent stating you have won a lottery. To claim your prize you must complete and submit a claim form accompanied by a fee. Alternatively, to receive your prize, you may be asked to open a bank account abroad and lodge a deposit.

* Free holidays — you receive a phone call, or an email, confirming you have won a free holiday and, to claim your prize, you must provide the caller with details of your credit card. The caller then uses the card details to charge up a range of extras.

* Charity frauds — your are approached by a bogus charity, or a bogus collector, who collects money in the name of a legitimate charity and who then diverts these monies for their own use.