According to the latest Bank of Ireland fraud data for the first half of 2024, the volume of investment fraud attempts has surged by 76% compared to the same period in 2023.

Investment fraud happens when fraudsters, posing as legitimate firms, offer consumers investment opportunities on social media or in a sponsored search result. A common tactic is to promise high returns and then put people under considerable pressure 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. 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 of Investment Fraud:

Nicola Sadlier, Head of Fraud, Bank of Ireland said: “The growth in investment fraud attempts is the most concerning trend we are seeing at the moment. The level of highly personalised targeting of consumers continues to grow year on year, and everyone needs to be on their guard. 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.

“We know that three in four consumers want to be able to speak directly with someone at their bank or financial service provider if they fall victim to fraud or are worried about a transaction. That’s why Bank of Ireland offers a 24/7 fraud telephone support for customers on 1800 946 764, available every day of the year. We encourage our customers to put this number in their phone so they have easy access to it if they ever need it.”

Bank of Ireland fraud research (Red C, 2024) reveals:

Aine McCleary, Chief Customer Officer, Bank of Ireland said: “Bank of Ireland runs one of the most comprehensive consumer fraud awareness programmes in Ireland, designed to help safeguard the financial wellbeing of our customers. However, our research shows that close to half of those surveyed do not feel at risk of fraud, and this underlines the importance of raising awareness of this very real risk.

“Bank of Ireland will spend €50 million on fraud prevention and protection measures this year and next. This includes €15 million on new fraud prevention technology, along with a range of high-profile consumer awareness campaigns and support for customers who are targeted by fraudsters.”

A new heavy-weight fraud awareness campaign across digital and social media is being launched this week, running for the rest of the year, designed to reach the general public across a range of media. The latest phase in Bank of Ireland’s consumer fraud education campaign, now in its fourth year, will have a particular focus on media to reach the 18-30 demographic, where research has indicated a degree of over-confidence. The campaign includes five new episodes of Fraud Watch: True Crime Stories, a content series featuring real-life examples of fraud scenarios including advice from international cyberpsychologist Professor Mary Aiken, digital audio ads, social influencer partnerships, a partnership with LADBible and Back To Basics social content series. The content highlights topical fraud scams and gives customers essential fraud prevention steps they can take.

• • Follow-up calls: You receive a call having clicked an investment product advert on social media or in a sponsored search result.
  • Big/fast returns: They promise a quick and profitable return, with little or no risk.
  • Pressure: They advise you must act quickly to take advantage of an “opportunity of a lifetime”.
  • Urgency: They tell you to make an urgent payment to get in on the deal.
  • Secrecy: They say you’re not to discuss the “investment” with family, friends or your bank and they may instruct you to sign a “non-disclosure agreement” (NDA).
  • 94% of people have been targeted by a fraudster in the last 12 months.
  • The most common way is by text message (89%), followed by phone calls (75%) emails (65%) and fraudulent WhatsApp messages growing in prevalence at 39%.
  • When asked whether they feel personally at risk of financial fraud, 43% of people still rate themselves as having little or no risk of fraud in the next 6 months. This increases to 52% in the age 18 – 30 category, showing a high degree of complacency or over-confidence.