The Bank of Ireland has issued a warning after its data showed a significant surge in investment fraud attempts in the first half of 2024 compared to the same period last year.
The Bank’s latest fraud data reveals that 94% of people have been targeted by fraudsters in the past 12 months, with investment fraud rising by 76% in the first half of 2024 compared to the same period last year.
Additionally, The data also shows that the most common method of fraud attempts is through text messages (89%), followed by phone calls (75%), emails (65%) and increasingly, fraudulent WhatsApp messages at 39%.
Despite these figures, 43% of people still believe they have little to no risk of falling victim to fraud in the next six months, with this complacency rising to 52% among those aged 18 to 30.
Investment fraud occurs when scammers, pretending to be legitimate companies, offer investment opportunities through social media or sponsored search results. They often lure victims with promises of high returns and create a sense of urgency, pressuring them to invest quickly.
Nicola Sadlier, Head of Fraud at Bank of Ireland, commented: “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.”
Reacting to this increase in fraud attempts, the Bank of Ireland has outlined key ‘red flags’ to help identify potential investment fraud. These warning signs include receiving a follow-up call after clicking on an investment ad on social media or in a sponsored search result, and being promised quick and substantial returns with little or no risk.
Another is that scammers often create a sense of urgency, pressuring victims to act quickly on what they describe as a “once-in-a-lifetime opportunity”. They may also urge people to make an immediate payment to secure the deal.
Additionally, they might ask to keep the investment secret, advising against discussing it with family, friends, or the person’s bank, and may even request that the victim sign a non-disclosure agreement (NDA).
To combat the rising risk of investment fraud, the Bank of Ireland has launched a fraud awareness campaign across digital and social media platforms, running until the end of the year.
Entering its fourth year, this phase of the Bank’s fraud education campaign will focus on the 18-30 age group, which has shown notable overconfidence about fraud risks. The campaign will feature five new episodes of “Fraud Watch: True Crime Stories,” showcasing real-life fraud cases and insights from international cyberpsychologist Professor Mary Aiken.
It will also include digital audio ads, collaborations with social influencers, a partnership with LADBible, and the “Back to Basics” social content series. These initiatives aim to raise awareness about current fraud scams and offer fraud prevention advice.
Aine McCleary, Chief Customer Officer at 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 €50m on fraud prevention and protection measures this year and next. This includes €15m on new fraud prevention technology, along with a range of high-profile consumer awareness campaigns and support for customers who are targeted by fraudsters.”
Earlier this month, the Bank of Ireland warned its consumers about ticket fraud. Lloyds Bank also issued a warning to Premier League football fans amid a rise in ticket scams.
