If an investment proposition sounds too good to be true, it probably is.
AIB is urging customers to remain alert to investment scams as fraudsters deploy increasingly sophisticated tactics to deceive individuals into parting with their money.
According to AIB’s head of financial crime, Mary McHale, customers are being defrauded out of hundreds of thousands of euro by investment scams.
“Recent cases reported to AIB’s financial crime team reveal a worrying trend, with scammers targeting individuals through social media platforms, WhatsApp groups, fake cryptocurrency platforms and professional-looking websites,” she says. “In one instance, a customer was convinced to transfer over €150,000 after being told they owed capital gains tax. Another scam victim lost €35,000 after trusting an intermediary who claimed to be investing on their behalf.”
READ MORE
McHale explains that fraudsters often pose as legitimate financial advisers or companies, offering high returns on investments in cryptocurrency, property or other assets. They use fake websites, documents and even celebrity endorsements to gain trust. Victims are pressured to act quickly and make payments using crypto wallets or unfamiliar platforms – methods that are difficult to trace or reverse.
In one case, an AIB customer saw an advert on Instagram that claimed high profile celebrities were investing in a certain product. He contacted the advertiser and was told to open an account and started to invest small amounts at first. The criminals used remote screen sharing software while also requesting personal and financial information to show him how his investment was growing. The customer invested more than €200,000 over a nine-month period.
Another fraudulent activity on the rise is known as second helpings scams. This is where the criminals go back to victims, claiming they are able to help them retrieve their original investment – for a fee, of course. This results in the customer losing more money on top of the original sums taken from them. “Unfortunately, some customers, who are often panicked and desperate, believe the scammers again,” says McHale.
Cryptocurrency scams have also been increasing in frequency. That’s no real surprise given some of the sharp rises in crypto valuations seen over the past year. McHale points to the case of a customer who joined a WhatsApp group believing they were investing in crypto. “They made manual payments to a fraudulent Iban provided by the scammer and lost thousands of euro.”
“Wait a sec and double check,” is her advice to anyone considering investing. “Verify before you invest,” she says. “Check if the firm is regulated and confirm the identity of the person contacting you. And be sceptical of urgency. Scammers often push for quick decisions. Take your time before parting with your money. Ignore celebrity endorsements – these are often fake.”
People should also watch out for unusual payment methods – requests to use crypto wallets or unfamiliar platforms are red flags, she advises.
“AIB is outlining increasingly common fraud types that criminals are using to steal people’s money,” McHale continues. “These investment scams are clever and convincing, often involving large sums of money. If something seems even slightly too good to be true, it probably is. That’s why you should wait a sec and double check and never move your money to another account without verifying the legitimacy of the firm and the individual you’re dealing with. Never rush into payments under pressure.”
She recommends that customers who wish to invest seek independent financial advice before parting with their money. “We are continuously investing to enhance our fraud monitoring systems in response to new and existing fraud trends. While other institutions don’t offer around-the-clock support to keep money safe, our fraud helpline (1800 24 22 27) is open 24 hours a day, seven days a week to support our customers when they need us.
“We also work closely with industry stakeholders including telecommunications companies, the Banking and Payments Federation of Ireland (BPFI), and the Garda to detect and report fraud trends, as it’s only by communicating and co-ordinating across the whole of society that together we can be effective in combating these criminals. Fraud is not just a crime for banks to urge caution over; the tech platforms which both host and profit from fraudulent ads also have to be part of a holistic solution.”
For more information on how to protect yourself from fraud, visit AIB’s Security Centre at aib.ie/security-centre
