Fraudsters target elderly who have already been ripped off in scam claiming to get money back

Heartless fraudsters are going after people approaching retirement while those who have fallen victim previously are being re-targeted with “recovery scams”, it’s emerged.

FraudSMART, which is an awareness initiative led by the Banking & Payments Federation of Ireland, warned those over the age of 50 are particularly vulnerable.

They said more and more workers are being duped with highly convincing investment scams by conmen using increasingly deceptive and elaborate techniques.

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Some scammers use the names and branding of well-recognised banks and investment firms to trick punters.

The gardai said nearly €60 million has been stolen from victims of these types of scams in the past four years - which makes it the highest-grossing crime type in Ireland.

FraudSMART revealed one man was tricked into handing over €80,000 of his life savings in an elaborate con. After doing research, the man was directed to a fake comparison website that showed different “investment options”.

He spoke with an agent who persuaded him to make a series of payments to an “investment account”.

He was in regular contact with the agent throughout and was even shown fake results. After sending the final payment, the agent stopped responding and he realised what had happened.

Six months later, the man received a cold call from what claimed to be a “refund recovery firm” who promised they could recoup the money he had lost if he paid an “administrative fee” of €8,000 - 10% of what had originally been stolen.

The man paid but later became suspicious when he received no response and contacted the Gardai who are now investigating.

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Detective Superintendent Michael Cryan of the Garda National Economic Crime Bureau stated: “We are continuing to see significant increases in investment scams, which can be very convincing and sophisticated.

“Recent figures published by An Garda Síochána showed an increase of over 90% in reports of this type of fraud in 2023 and these increases are continuing into 2024.”

The top cop added: “Victims of this type of fraud tend to be over 50 years of age and we would like to advise all members of the public, particularly those over the age of 50, to be on alert for these scams, to be wary of offers only advertised through social media or allegedly endorsed by celebrities and if you believe you may be a victim of investment fraud to report it to your bank and An Garda Síochána as soon as possible.

“Always seek professional advice before making any investments and if an offer sounds too good to be true, then unfortunately it probably is.”

Meanwhile, Niamh Davenport, Head of Financial Crime with BPFI, said: “While investment scams have been circulating for a while, FraudSMART members have noticed a continued and significant increase in the past few months often targeting people over 50 who may be looking for an opportunity to top up their finances ahead of retirement.

“Fraudsters are using deceptive and elaborate techniques using the names and branding of well-recognised banks and investment firms, with some fraudsters even going so far as to create a ‘copy-cat’ profile on social media of a real employee or ‘agent’ from an investment firm to convince people of their legitimacy.”

She added: “We are now seeing a worrying trend emerging where fraudsters are contacting people who have already fallen victim to an investment scam, promising to recover their money but requiring an upfront fee first, sometimes describing it as a ‘retainer fee’ or ‘processing fee’.

“The recovery scam often comes from the same criminals behind the original investment scam, or else the victim’s personal information has been passed on or sold to other criminals.

“The fraudster, using the information from the previous scam, can ‘helpfully’ tell the victim about the earlier fraud, which can make them sound credible.

“There have also been cases where people have been targeted through online and social media ads. Unfortunately, our members have seen cases of these scams ranging from anywhere from €1,000 to €10,000.”

Ms Davenport urged punters to “be cautious of adverts online and on social media platforms, even if they are paid or sponsored ads using familiar brand or business names.

“Pause for thought and contact the company independently to verify the details.

“Don’t trust cold calls, text messages, letters, emails, or messages on social media from someone who says they can recover money you lost in a scam for a fee.

“This simply isn’t true. If you have transferred money or shared your bank details and realise it might be a scam, report it to your bank and the Gardai immediately.”

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