Bank of Ireland warns of fake investment ads on Facebook and Instagram offering bogus bonds and deposits. Surge in fraud reports expected in coming months.
Bank of Ireland has issued a warning about a wave of fraudulent investment advertisements currently circulating on Meta platforms, including Facebook and Instagram.
The ads, which began appearing in August, promote fake bonds and deposit products allegedly linked to European banks and have already reached tens of thousands of users across the EU.
“The real sting comes later. Victims often sign up for fixed-term investments of six to twelve months, only to discover the scam when they try to access their funds – and the company has disappeared”
According to the Bank, the ads are professionally designed and use convincing language to offer fixed-term investments with high returns and minimal risk.
If it’s too good to be true, it probably isn’t
Once users engage with the ads and submit their details via online forms, they are contacted by individuals posing as investment managers, who provide follow-up materials and phone calls to reinforce the scam.
Nicola Sadlier, Head of Fraud at Bank of Ireland, said the current wave of scams is particularly concerning due to its sophistication.
“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,” she said.
“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.”
Sadlier warned that many of the fraudulent products are fixed-term investments, meaning victims may not realise they have been defrauded until they attempt to access their funds months later.
“The real sting comes later. Victims often sign up for fixed-term investments of six to twelve months, only to discover the scam when they try to access their funds – and the company has disappeared,” she said.
The bank expects a surge in fraud reports in the coming six to twelve months as more victims reach the end of their investment terms. It is urging consumers to be cautious and to avoid unsolicited investment offers online.
Sadlier advised consumers to verify any financial product through their bank or a trusted financial advisor and to check whether the investment firm is regulated by consulting the Central Bank of Ireland’s register.
“If a firm is not listed, do not invest. We also recommend checking for published warning notices,” she said.
Bank of Ireland offers a 24/7 fraud support line for customers at 1800 946 764 and encourages people to save the number to their phones for quick access in case of suspected fraud.
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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:
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- 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.
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