Investment fraud attempts spike 76% in first half of 2024

By Gloria Methri

Recent data from the Bank of Ireland reveal that the volume of investment fraud attempts surged by 76% in the first half of 2024 compared to the same period in 2023.

The majority of cases see fraudsters re-targeting victims through phone calls and messages, continuing the scam under the guise of assisting. Disturbingly, this growing trend involves criminals contacting individuals who have already been victims of fraud, pretending to help them recover their lost money—only to exploit them further to gain access to their accounts.

The escalating threat underscores the need for heightened vigilance and more robust protective measures for consumers. According to the data released by the Bank of Ireland, early warning signs of investment fraud include the following:

• 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: You are not to discuss the “investment” with family, friends or your bank, and you may be instructed to sign a “non-disclosure agreement” (NDA).

Nicola Sadlier, Head of Fraud at Bank of Ireland, said, “The growth in investment fraud attempts is the most concerning trend we are seeing now. 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 accurate 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 is why Bank of Ireland offers 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.”

The Bank of Ireland fraud research reveals:

• A fraudster targeted 94% of the people surveyed in the last 12 months.
• The most common method is text message (89%), followed by phone calls (75%), emails (65%) and fraudulent WhatsApp messages, which are growing in prevalence to 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 18 – 30 age categories, showing a high degree of complacency or overconfidence.

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 well-being 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 genuine risk.

“The bank 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.”

Plan of Action

A new heavy-weight fraud awareness campaign across digital and social media is being launched this week and will run for the rest of the year. The campaign is designed to reach the 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 overconfidence.

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. It also includes digital audio ads, social influencer partnerships, a partnership with LADBible and the Back to Basics social content series. The content highlights topical fraud scams and gives customers essential fraud prevention steps they can take.