Investment fraud attempts surge by 76% in the first half of 2024

Pictured at the launch of Bank of Ireland’s latest fraud consumer awareness campaign are Nicola Sadlier, Head of Fraud, Bank of Ireland along with cyberpsychologist, Professor Mary Aiken and Baz Ashmawy in the ‘film noir’ style of Fraud Watch: True Crime Stories, a video series that features accounts of real-life fraud attempts. The series uses a striking ‘film noir’ theme to capture the viewers’ attention and engage them in the stories featuring expert advice and practical tips, reminding people how to protect themselves against fraud.

94% of the population have been targeted by fraudsters in the last 12 months. (Red C)
Fraudsters posing as bogus ‘recovery firms’ re-targeting customers who have been a victim of fraud is on the increase.
“The growth in investment fraud attempts is the most concerning trend we are seeing at the moment. The level of personalised targeting of consumers continues to grow year on year.” – Nicola Sadlier, Head of Fraud, Bank of Ireland.

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:

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).

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:

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.

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.

Anyone who suspects they have been a victim of fraud should contact their bank immediately so that the bank can try to stop the fraud and try to recover funds. Bank of Ireland customers can call the Fraud Team 24/7 on the Freephone line 1800 946 764.

For advice and information on how to stay safe from fraud, visit the Security Zone on the Bank of Ireland website.

ENDS

Notes to Editors:

Data sources:

Investment fraud attempt data provided by Bank of Ireland Fraud Prevention team.

Research:

Red C. (2024). Red C Omnibus February 2024.

Red C. (2024). FINANCIAL FRAUD, RED Line Online Omnibus 23rd May ’24.

Bank of Ireland developments to combat fraud:

Bank of Ireland takes a wide range of steps to protect our customers and the Bank from all types of fraud, including:

Resourcing a dedicated fraud team which works 24/7 to catch fraud attempts and alert and protect customers, and to attempt to retrieve customers’ money when a fraud attempt is successful;
Investing in a range of fraud services, tech systems, and upgrades to enhance consumer and business protection from fraud;
Running ongoing fraud-awareness campaigns directed at customers and the wider public, and support the sector in similar activity through our membership of the Banking and Payments Federation of Ireland (BPFI);
In-person fraud awareness events in Bank of Ireland branches around the country ran throughout 2024 and will resume in September. 108 events featuring advice from Bank of Ireland’s Fraud team and Garda fraud experts were attended by 7,300 customers, business owners, student and members of the general public in 2024 to date.
Maintaining very active working relationships with national and international police forces and inter-governmental agencies to track emerging threats and help trace criminals; and,
Assessing where national policy initiatives may be brought forward to further bolster Ireland’s resilience against fraud, for example the development of a National Financial Crime Strategy and a Shared Fraud Database.

Practical steps that we have taken to protecting customers include:

Offering the Bank of Ireland TextChecker Service – this allows customers to check directly with Bank of Ireland if a text is genuine, which the Bank will confirm within 60 seconds
New payee limits on daily transfers – when customers add a new payee there is a period of up to 48 hours where the limit that can be transferred is €1,000. This lower temporary limit is in place to protect customers from fraud when new payees are being set up.
In-app Card Control features
Two-factor authentication