Fraud victims targeted again by criminals in ‘recovery scam’, public warned

Victims of fraud are being re-targeted by criminals in the latest phase of highly convincing investment scams, the public have been warned.

Recent figures from An Garda Síochána showed that almost €60m was stolen from victims of investment fraud in the past four years, and it is now the highest grossing crime type in Ireland.

In the latest cruel twist, fraudsters are targeting victims of previous scams, offering to recover the money they have lost.

Niamh Davenport, head of financial crime at Banking & Payments Federation Ireland (BPFI), said new cases have emerged of what are known as “recovery scams”.

“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’,” said Ms Davenport.

“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.”

BPFI is leading an awareness initiative known as FraudSmart, in conjunction with its member banks, which include AIB, Bank of Ireland, An Post and Revolut.

The initiative is designed to inform consumers and businesses of the latest trends in financial fraud.

A fresh warning has been issued to consumers, particularly those over the age of 50, to be on alert as convincing investment scams have continued to increase in the past few months.

Those over 50 are being particularly targeted as they may be looking for ways to invest their savings in advance of retirement.

Ms Davenport said: “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 ‘copycat’ profile on social media of a real employee or ‘agent’ from an investment firm to convince people of their legitimacy.”

She said consumers should be cautious of online adverts even if they use familiar brand or business names.

“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,” she added.

“If you have transferred money or shared your bank details and realise it might be a scam, report it to your bank and the gardaí immediately.”

Detective Superintendent Michael Cryan, of the Garda National Economic Crime Bureau, said: “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 90pc in reports of this type of fraud in 2023 and these increases are continuing into 2024.”

The public are being advised there are few legitimate investment opportunities that require an immediate transfer of cash.

Furthermore, a social-media post sharing details of being a victim can attract the attention of recovery scammers and lead to being re-targeted.

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