Fraud alert: Investment scam for fraudulent European deposit and bond products in circulation

Bank of Ireland is warning of a wave of investment fraud ads currently in circulation on Meta platforms. 

Fake advertisers have posted multiple ads on Facebook and Instagram in August promoting what it claims are bonds from European banks.

The ads are targeting users across the EU and all demographics – 24 similar ads using this tactic alone have so far been seen by almost 43,000 users across the EU.

The ads, which offer fake deposits and bonds investment products, are notable in the professional language and convincing appearance, promising higher than average returns on fixed-term investments.

Once a customer clicks on the ad and submits their details via an online form, they are then targeted with a range of supporting materials and follow-up phone calls from a fraudster posing as an investment manager.  (Examples are included below).

Many of the investment opportunities offer fixed term returns, meaning there will be an expected surge in reporting of these fraud case in 6 or 12 months when people discover the fake investment company no longer exists.

Nicola Sadlier, Head of Fraud, Bank of Ireland said: We are seeing a wave of fake investment ads on social media which offer guaranteed high returns on European investment products, with little or no risk.  These ads which are in circulation now on Meta platforms are particularly concerning, as they look more professional compared to the more obvious fraudulent ads for trading platforms or crypto investments.

“The real sting comes later. Victims often sign up for fixed-term investments of 6 to 12 months, only to discover the scam when they try to access their funds—and the company has disappeared.

“The growth in investment fraud is one of the most concerning trends we are seeing. 

“The level of highly personalised targeting of consumers continues to grow year on year, and everyone needs to be on their guard.

“We are urging consumers to ignore any unsolicited investment offers online, and always verify financial products through their bank or trusted financial advisor.

“Make sure that the investment firm is regulated by checking the Central Bank of Ireland register (ROI). 

“If a firm is not listed, do not invest. We also recommend to check for published warning notices.

“Bank of Ireland offers a 24/7 fraud telephone support for customers on 1800 946 764, available every day of the year.

“We encourage our customers to put this number in their phone so they have easy access to it if they ever need it.”

 How this scam works:

• Ads link to a website or form directing customer to a contact form.

• Customer is asked to submit their email and phone number for more information.
• Customer will receive a follow-up email and phone call from a fraudster posing as a very convincing investment manager, including details of the bond / deposit opportunity along with professional looking supporting materials.
• One fraudster referred several times to being “officially recognised as one of the Top 10 Independent Investment Companies in Europe” and “under the regulatory supervision of FINMA (Swiss Financial Market Supervisory Authority)”.
• Customer will then be duped into investing in fake fixed-rate investment products including bonds.

 Red flags of Investment Fraud:

• • Follow-up calls: You receive a call having clicked an investment product advert on social media or in a sponsored search result.
  • Big/fast returns: They promise a quick and profitable return, with little or no risk.
  • Urgency: They encourage you to get in on the deal before its sells out.

For advice and information on how to stay safe from fraud, visit the Security Zone on the Bank of Ireland website.