Bank of Ireland said fraudsters were increasingly using fake social media ads to lure victims to join an investment WhatsApp group.<\/p>\n
Posing as a financial investment expert, the fraudster then spreads misleading information to group members about particular companies or stocks.<\/p>\n
Group members then buy the stock and the price is pumped up due to the increased demand.<\/p>\n
However, when the price peaks, the scammers dump their holdings at a profit, and disappear.<\/p>\n
Bank of Ireland commissioned research that found that seven in 10 social media users do not trust social media companies to protect them from fraud like \u201cpump and dump\u201d.<\/p>\n
And nearly three-quarters of the respondents distrust the ads they see on these platforms.<\/p>\n
The Red C research, conducted with a nationally representative sample of 1,004 consumers, found that 91pc of people believe social media firms should be banned from profiting off fraudulent ads.<\/p>\n
A majority also says that financial service advertisers on social media should be required to prove their legitimacy.<\/p>\n
With \u201cpump and dump\u201d scammers buy cheap assets. They purchase large amounts of a low-volume, low-price stock or cryptocurrency. The purchases are often obscure or illiquid assets.<\/p>\n
They then create WhatsApp groups, or use Telegram, Discord groups and pose as financial experts or insiders.<\/p>\n
They spread false or misleading information about specific companies or stocks.<\/p>\n
Bank of Ireland said that as more people believe the hype and buy the asset, the price artificially inflates due to increased demand.<\/p>\n
Once the price peaks, the scammers sell their holdings at a profit.<\/p>\n
This sudden sell-off causes the price to crash, leaving victims with worthless or devalued assets.<\/p>\n
The WhatsApp group is often deleted or abandoned, and the scammers move on to repeat the scheme elsewhere.<\/p>\n
The market research revealed that most consumers believe that fraud is a big problem in society today.<\/p>\n
It makes them wary when they shop online.<\/p>\n
Head of fraud at Bank of Ireland Nicola Sadlier said: \u201cSocial media platforms have become a lucrative hunting ground for fraudsters and consumers are paying the price while technology giants gain revenue.<\/p>\n
\u201cAs we launch our new fraud awareness campaign highlighting scams originating via social media, a new spate of \u2018pump-and-dump\u2019 investment fraud is spreading fast, mainly using WhatsApp.\u201d<\/p>\n
Fraud prevention experts and international cyberpsychologist, Professor Mary Aiken, said fraud online is now an industrialised, platform-enabled phenomenon.<\/p>\n
\u201cScammers leverage the same targeting and engagement tools legitimate advertisers use; the difference is that families and businesses bear the cost.\u201d<\/p>\n
Meanwhile, Bank of Ireland said a text it sent out to its mortgage customers, about a delay in taking their September payments, was genuine.<\/p>\n
\u201cWe texted some customers to let them know about a delay in us debiting their most recent mortgage payment \u2013 it was due to debit on Monday and debited today instead.\u201d The bank said he issue has been resolved and it apologised for any inconvenience.<\/p>\n
Anyone who suspects they have been a victim of fraud should contact their bank immediately so that the bank can try to stop the fraud and try to recover funds.<\/p>\n
Bank of Ireland customers can call the Fraud Team 24\/7 on the Freephone line 1800 946 764.<\/p>\n
SSIA:<\/p>\n
The Government should introduce a Special Savings and Investment Scheme in next month\u2019s Budget to re-route money<\/p>\n","protected":false},"excerpt":{"rendered":"Bank of Ireland said fraudsters were increasingly using fake social media ads to lure victims to join an…\n","protected":false},"author":2,"featured_media":42531,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[73],"tags":[79,2107,18,19,17,2108],"class_list":{"0":"post-42530","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-charlie-weston","10":"tag-eire","11":"tag-ie","12":"tag-ireland","13":"tag-money-experts"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/42530","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=42530"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/42530\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/42531"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=42530"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=42530"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=42530"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}