Gardaí warn of 120% increase in investment fraud scams during pandemic

Chief Superintendent Pat Lordan said that this sort of crime is often underreported due to embarrassment. File picture: PA

There has been a 120% increase in investment fraud scams during the Covid-19 pandemic with one person losing almost a quarter of a million euro.

Gardaí said that due to increased online traffic during the pandemic, such scams are “becoming more prevalent”.

Criminals are using “ever-increasingly sophisticated means” to target the general public.

Gardaí are urging people to be aware of scams, saying that “if it sounds too good to be true then it probably is”.

An investment fraud scam is a fraud where criminals pose as investment managers, promise quick and high rates of return, and simply steal your money.

Chief Superintendent Pat Lordan said that this sort of crime is often underreported due to embarrassment.

“During Covid-19 times, we have seen a nearly 120% increase in this type of crime,” said Chief Supt Lordan.

“We know that this crime is underreported as victims will often be embarrassed or ashamed at having been caught out.

“One case involved a retired professional from the Midlands who lost his entire pension and savings of nearly quarter of a million euro.

Our advice is simple, don’t respond to unsolicited approaches, be wary of wild claims, and never ever let anyone have remote access to your computer.”

Gardaí have now issued advice on how to identify investment fraud scams and how to protect yourself from them.

Gardaí highlighted that those running the scam use various investment schemes such as in rare metals, overseas property, and alternative energy schemes such as carbon credits and forestry.

“Promises are made of fast, enormous returns, once in a lifetime opportunities and can be seen to be endorsed by reputable business people or celebrities but this is without their knowledge.” 

They said that nearly all recent investment fraud scams “involve virtual assets such as bitcoin and other cryptocurrencies”.

Gardaí said: “Many people online are responding to pop-up adds, following advice received via social media or they seek out investment advice on the internet and follow links to company sites which appear to be professional.

“Quite often these fraudulent sites are hosted well beyond the EU or are companies registered in unregulated jurisdictions.” Gardaí added that there is “huge element” of “aggressive, hard selling” associated with these scams.

“Once the victim is duped into a fraudulent investment, there are many means by which the criminal can steal funds from the victims account – including via remote access to the victim’s computer, receipt of personal information, bank accounts and photographic identification.

“False investments are made on behalf of the victim while the criminal transfers and steals the money.

“Losses start at €1,000, the majority are in excess of €40,000, representing a person’s life savings or pension lump sum.” 

Gardaí issued the following advice for people to be aware of investment fraud scams:

• If it is too good to be true, it probably is
• Do your own research and be wary of wild claims 
• Always seek independent financial and legal advice before making any investments
• Check the various registers on the Central Bank of Ireland’s website
• Use regulated investment firms where possible (Virtual assets are not currently regulated in Ireland) 
• Do not respond to unsolicited approaches or cold-calls 
• Don’t click on links for websites that you don’t know 
• Never ever disclose your bank account passwords or codes 
• Never allow anyone remote access to your computer

Last week, the Competition and Consumer Protection Commission (CCPC) warned the public over a potential pyramid scheme circulating on social media.

The CCPS said that consumers have made contact saying they have been invited to take part in the suspected scheme.

It added that the scheme appears to be targeting students and young people and may refer to a flower or petals.

In Ireland, pyramid schemes are illegal and those who knowingly participate in them are liable for prosecution.