Gardaí warn of increasing risk of investment fraud as man in his 60s loses €300,000

Gardaí detailed the case of one man in his 60s who lost €300,000 and another in his 50s who had €121,000 stolen.

In a 90% increase, a total of €25,360,000 was reported stolen up to the end of the year — a sum almost equal to the combined amount stolen from victims in 2021 and 2022, at €14m and €11.5m respectively.

Some 965 people have reported incidents between January 2020 and January this year, with almost €60m being stolen from victims.

Meanwhile, in the first two months of 2024, more than 55 people have already reported investment fraud.

This is more than double the number of victims who reported the crime in the first two months of 2023.

Men are increasingly becoming the victim of the type of fraud. In 2023, the majority (69%) of victims were men. This has steadily increased since 2020, when men made up just over half.

The vast majority of those affected are aged over 40.

According to gardaí, investment fraud is where “criminals pose as investment managers to fool someone into investing money in schemes and projects that do not exist”.

These sophisticated criminals are taking advantage by cloning webpages and targeting victims through online and social media adverts by promising ‘once-in-a-lifetime opportunities’ to instantly invest, with fast and large financial returns.

One particular incident, in May 2023, involved a man, aged in his 40s. He clicked on a social media link advertising investment opportunities, and entered his contact details.

He was later contacted by phone by a person purporting to be from a reputable financial institution about purchasing bank bonds. He was defrauded of €100,000.

Separately, in 2023, a victim in his 60s reported that he had been contacted online about investing with a British financial institution.

After being convinced by the person he was communicating with, he transferred funds and had €300,000 stolen.

In another “particularly sophisticated crime”, a man aged in his 50s had €121,000 stolen. The victim believed that he was legitimately engaged in online trading and was communicating with someone who had encouraged him into it.

The victim had access to an online trading app and was under the illusion that he could see his funds being traded, however, the app itself was fake.

“People are always going to be attracted to the promise of big profits,” said Detective Superintendent Michael Cryan of the Garda National Economic Crime Bureau.
“That is why these sophisticated, fraudulent investments are on the rise. 

Those affected by this type of crime are ordinary people who really unfortunately can lose their life savings, nest eggs, or a retirement lump sum.

“Investment fraud can quite easily happen. The fraudster will sound convincing and claim to have insider knowledge but they are following a well-rehearsed script; they’re prepared for potential questions and they tend to be excellent actors.

“They may purport to be working with a reputable firm and may even quote authorisation numbers or give the real address of a legitimate firm, but this is all a coy,” he said.

“I strongly encourage anyone who has been a victim in the past or who has more recently become a victim of investment fraud to please come forward and speak with us in any Garda station.”