Most of us will have seen them online. Seemingly plausible clips featuring Irish or international figures – typically with a financial background – talking about a new investment opportunity. A link invites those reading to click to access further information. It all looks professional and convincing.
Unfortunately, however, it is a scam. And an increasingly common one. Garda figures show a 21 per cent increase in investment fraud in the last three months and the sums of money are significant. Investment scams totalled €31 million last year and the average loss in recent months has been €30,000 to €40,000, with some losing significantly more.
Such scams existed before the digital age, but the ubiquity of many platforms and the ease of using artificial intelligence to create fake advertisements means that fraudsters can now ensure that many people see them. And if just a few fall for the scam , then his makes it well worth their while.
While it may be like a game of “Whack-a Mole”, online platforms need to be pushed to do more to police this activity. Many celebrities have seen their pictures used repeatedly in such frauds across a number of platforms. This raises legitimate questions about the extent of checking of paid content. As in other areas, the social media platforms too often seem to act as if this is not their problem.
RM Block
Banks also need to be alert – and their efforts to highlight the issue are welcome. But as the fraudsters contact their victims directly, there is also a responsibility on the public to be informed. The latest scams are targeting over-50s with “sure thing” investments to top up their pension earnings. Many will quickly realise they are dealing with a fraud. But some are being pulled in by convincing fakes and engaging with fraudsters who typically claim to be from a respected institution and put pressure on their victims to move quickly to take advantage of an opportunity.
The advice to those browsing investment options online is that if something seems too good to be true, then it almost certainly is.
