Over €12 million was stolen as part of investment fraud as gardai have issued a stark warning over cryptocurrency scams.
There was a nearly 70% increase in reports of such frauds in 2021 compared to the previous year.
Investment fraud is when criminals posing as investment managers fool people into investing money in fake schemes and projects.
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There has been a massive rise in scams involving cryptocurrency with fake investment managers, cloned websites or unregulated companies promising "once in a lifetime opportunities" with fast and enormous returns.
Sometimes these opportunities may even appear to have been endorsed by reputable business people or celebrities, but without their knowledge.
In some cases, victims are persuaded to download links that allow the criminals to access their computers and empty their bank accounts.
Figures from gardai revealed that almost 50% of victims were aged over 55 (63% male, 37% female).
Most people who fall victim to these types of scams are ordinary people with officers warning that "if it sounds too good to be true then it probably is".
How to identify an investment fraud?
• In most cases, huge and quick returns on investment in cryptocurrencies are offered as a hook by fake websites/companies
• The fraudulent website is hosted outside of the EU or the company is registered in a country far away where there is no regulation or come back.
• Pop-up ads that appear on your social media feed for cryptocurrency investments often claim to be endorsed by well-known business people or celebrities
• The fraudulent websites can be very slick and professional-looking; you may even be sent impressive graphs, charts or projections showing how your investment is doing and encouraged to part with even more of your money
• You are being rushed into accepting an offer – the ‘investment manager’ says you will live to regret it if you don’t invest right now.
How to avoid investment fraud?
• Don’t invest until you get reliable financial and legal advice
• Check the regulatory status of the company on the Central Bank of Ireland’s website
• Don’t respond to pop-up/social media ads or messages with wild claims about investment returns
• Ignore unsolicited approaches or cold calls about investments
• Beware of celebrity-endorsed investments – they may not even know that their name is being used
• Be wary of fake wallets (for storing your cryptocurrency) – these can be scams for malware to infect or control your computer
• Do not click on links for websites you don’t know (is the site HTTPS secured even?)
• NEVER allow anyone remote access to your computer (or download Apps that give others control of your computer)
• NEVER EVER disclose personal data or bank account passwords or codes.
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