Bank of Ireland has issuing a warning about “pump and dump” WhatsApp investment scams whereby fraudsters lure victims to join an investment WhatsApp group via fake social media ads.
The scam works by a fraudster posing as a financial investment expert who spreads misleading information to group members about particular companies or stocks.
Group members then buy the stock, and the price is pumped up due to the increased demand. When the price peaks, the scammers dump their holdings at a profit, and disappear.
Bank of Ireland head of fraud Nicola Sadlier said social media platforms have become a “lucrative hunting ground” for fraudsters, while consumers are paying the price while technology giants gain revenue.
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“As we launch our new fraud awareness campaign highlighting scams originating via social media, a new spate of ‘pump and dump’ investment fraud is spreading fast, mainly using WhatsApp,” she said.
Bank of Ireland’s new fraud awareness campaign launches with the theme “not all social is social”, highlighting the threat of fraud originating via social media platforms.
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The bank’s consumer and business fraud education campaign for 2025 focuses on investment scams, chief executive fraud, invoice redirection, smishing and fake online purchases.
The digitally led media campaign provides actionable advice from Bank of Ireland’s fraud prevention experts, while international cyberpsychologist Prof Mary Aiken is charged with protecting customers’ financial wellbeing.
Through extensive public affairs and PR activity, the bank has been campaigning for a change in legislation to better protect consumers from fraud originating on social media channels.
Research from Bank of Ireland on fraud shows seven in ten social media users do not trust social media companies to protect them from fraud and nearly three-quarters (73 per cent) distrust the adverts they see on these platforms.
It also reveals that 91 per cent believe social media firms should be banned from profiting off fraudulent ads, while 90 per cent say that financial service advertisers on social media should be required to prove their legitimacy.
“Fraud online is now an industrialised, platform-enabled phenomenon,” said Prof Aiken. “Scammers leverage the same targeting and engagement tools legitimate advertisers use; the difference is that families and businesses bear the cost.
“Bank of Ireland’s findings, which show that seven in ten users distrust platform protection and over 90 per cent want an end to profits from scam ads, reveal an overwhelming public appetite for reform. Not all social is social. Much of it is commercial, algorithmic and adversarial.
“The solution is safety by design, verifying financial advertisers, building friction and warnings into investment journeys, and enforcing clear accountability when systems enable harm. If platforms can target us to buy, they can target protections to keep us safe.”
