Surge in scams targeting consumers but younger people 'complacent' about being stung, study finds

Data for the first half of 2024 shows the volume of investment fraud attempts has jumped by 76% compared to the same period last year.

There has been a massive surge in consumers personally targeted by scammers, with young people especially complacent about being stung, Bank of Ireland research has found.

Data for the first half of 2024 shows the volume of investment fraud attempts has jumped by 76% compared to the same period last year. Growth in investment fraud is “the most concerning trend”, it said.

Research by Red C shows 94% of the population have been targeted by fraudsters in the last 12 months, but 43% of people think they have little to no risk of becoming a victim of fraud.

This rises to 52% in the 18-30 age group, which Bank of Ireland described as a “high degree of complacency or over-confidence".

“The level of highly personalised targeting of consumers continues to grow year on year, and everyone needs to be on their guard,” said the bank’s head of fraud Nicola Sadlier.

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.

The bank said investment fraud happens when scammers offer consumers investment opportunities on social media or in a sponsored search result, while posing as a legitimate firm.

One of their common tactics will be to promise high returns and pressurise people to commit to the investment “opportunity” quickly.

“The majority of investment fraud cases begin on social media, with customers then receiving phone calls and messages to continue the scam,” Bank of Ireland said.

“The practice of re-targeting customers is also a growing trend. This is where fraudsters contact a person who has already been a victim and pose as someone trying to help the consumer recover their money. However, this is simply another way for them to try to gain access to consumers’ accounts.” 

Red flags

It highlighted several “red flags” that should warn people that something may potentially be a scam.

This includes follow-up calls after clicking on an advert on social media, the promise of big and fast returns with little to no risk, pressure and urgency to take advantage of “the opportunity of a lifetime”, as well telling people not to discuss the “investment” with family, friends or their bank or to sign a non-disclosure agreement.

In the Red C research, the common method of attempted scamming happened through text message (reported by 89% of people), phone calls (75%), emails (65%) and fraudulent WhatsApps (39%).

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And it is not just consumers getting hit by fraudsters. Data published last month suggested small- and medium-sized businesses lost nearly €10m last year through email-related scams, a rise of 23.8%.

Isme chief executive Neil McDonnell said “no business is immune” to this type of same and the “consequences can be catastrophic”.

“I urge all SMEs and their employees to review their current payment policies and procedures,” he said.

Anyone who suspects they’ve been a victim of fraud is urged to contact their bank as soon as possible so their bank can try to stop the fraud and recover their funds.