The ads are promoting what is claimed are bonds from European banks.
These are targeting users across the European Union and all demographics.
Bank of Ireland said 24 similar ads using the same tactic alone have so far been seen by almost 43,000 users across the EU.
The bank described the ads as professional and convincing.
Fraudsters are targeting social media users. Photo: Getty
Today’s News in 90 Seconds – August 21st
In a statement, it said: “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.”
It said that 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.
Many of the investment opportunities offer fixed term returns, meaning there will be an expected surge in reporting of these fraud case in six or 12 months when people discover the fake investment company no longer exists, the bank said.
Head of fraud at Bank of Ireland Nicola Sadlier 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 [the owner of Facebook and Instagram] platforms are particularly concerning, as they look more professional compared to the more obvious fraudulent ads for trading platforms or crypto investments.”
Ms Sadlier said the real sting will come later.
“Victims often sign up for fixed-term investments of six to 12 months, only to discover the scam when they try to access their funds—and the company has disappeared.
She said the growth in investment fraud is one of the most concerning trends the bank is seeing.
“The level of highly personalised targeting of consumers continues to grow year on year, and everyone needs to be on their guard.”
Consumers have been urged to ignore any unsolicited investment offers online, and always verify financial products through their bank or trusted financial adviser.
People should make sure that the investment firm is regulated by checking the Central Bank of Ireland register.
If a firm is not listed, consumers should not invest. Consumers were also advised 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,” Ms Sadlier said.
The scam works by linking ads to a website or form directing customer to a contact form.
Customers are asked to submit their email and phone number for more information.
The 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)”.
Customers will then be duped into investing in fake fixed-rate investment products including bonds.