Earlier this month, Pricewatch was contacted by an individual who introduced himself as Darren, bringing surprisingly good news. Apparently, some bitcoin we had acquired in 2017, either through purchase, winnings, or gift, had appreciated to be worth over €130,000. Due to our account’s dormancy, the fund was locked, and urgent action was required to reactivate it.
Darren suggested sending a mail to start the process of reactivating our account so that we could “withdraw the money”. However, “we” referred to Darren teaming with his criminal accomplices, intending to withdraw real money from our bank account rather than the stated virtual currency.
Given that Pricewatch had some free time, instead of severing the conversation with Darren abruptly, we expressed our excitement and encouraged him to guide us through the next steps. He hesitated before handing us over to his superior.
“Hold on for a moment, don’t end the call,” Darren requested.
As if we would do such a thing.
Another individual known as Jimmy Hayes, claimed to be Darren’s supervisor, joined in shortly. “Hello, can you hear me? I am Jimmy Hayes, Darren’s supervisor, how may I assist you?” he asked.
Curiously, we had similar questions. They weren’t strangers; not only did they have my mobile number, but they also had my name, which could make the call seem more legitimate. Having experienced such deceptive calls previously, we were cautious. We were a little disconcerted knowing our details were being passed around among unscrupulous individuals on the dark web, but there was little we could do about it.
Back to Jimmy Hayes; he confessed that Darren was a novice and was having trouble explaining our account details. He asked if we had any queries, or if we wanted him to start from the beginning. We asked him to go over it from the start, just for laughs.
Jimmy Hayes revealed to us on October 6th, 2017 that we had established a bitcoin account. Despite our bewilderment, he insinuated that even though we may not have made any bitcoin purchases, we could have either won 2.7 Bitcoin or been presented with it as part of a digital promotion. His suggestions were ambiguous, but conceivable for those inclined to trust.
Demonstrating a strong emphasis on trust, Hayes went on to assert that “integrity fosters trust”, guiding us through steps to thaw the bitcoin, transfigure it into physical cash and transfer it into our bank account. We were taken aback when he told us that he would be sending a mail laden with valuable links from a Gmail account, critical for initiating the process, rather than a professional business one. In response to our puzzlement, he justified it as an alternative due to an issue with Microsoft’s software that prevented him from utilising his primary work account.
Despite multiple attempts at sending us the mail, we received nothing. Eventually he suspected foul play, abruptly ending the call before we could reproach him. Nevertheless, we took mild satisfaction in having consumed 10 minutes of his time.
It’s not difficult to grasp the scam that Darren and Jimmy were orchestrating in this situation. However, it’s frighteningly easy to envision unsuspecting individuals falling victim to their deceit – and they are. Recent figures from Ireland’s Banking and Payments Federation highlight that almost €100 million has been pilfered from the Irish population by fraudsters in the past year. This is a significant escalation of 16 per cent compared to 2022.
Payment card scams represented 95 per cent of the fraudulent activity, totalling €35.2 million or 36% of the total losses. Although other forms of fraud had smaller instances, a tremendous amount of money was lost as a result.
Unlawful electronic transfers, where crooks seize consumers’ mobile or online banking credentials and splurge and wire funds without the account owner’s permission, made up just 3% of fraudulent instances. However, the ensuing €33.8 million in losses comprised around 34 per cent of total losses.
A common method of fraud known as authorised push payment, where crooks deceive individuals into transferring money to an account under their control, represents only one per cent of illicit transactions, yet it has resulted in a significant increase in losses, exceeding €18 million. This might involve tactics such as conning people through supposed investments, romantic endeavours, or cryptocurrencies. One particular such scheme gaining prominence is the accommodation scam.
An instance of this scam was recently shared with us by a reader, Sarah, to help demonstrate how these operations work. Sarah relocated from Ireland to the Middle East, losing €1,600 to fraudsters in the process of looking for a residence. She happened upon a potential rental property and initiated contact via WhatsApp, which is a common practice in that region.
Accommodation scams are notably rampant in August and September, accounting for over 30% of all such fraud, according to data from Garda. Just last month, before the likely peak of the perpetrators’ activity, 12 individuals lost more than €20,000 collectively, with little likelihood of any recovery.
Sarah received a link to a reputable long-term rental website. Suspecting foul play, she verified with the website directly, who confirmed everything was in order. Upon making the payment, however, no confirmation number was provided and the link vanished. It transpired that she had fallen prey to a scam; fraudsters had replicated the legitimate booking platform and advertised a fictitious property to steal her money.
Much to her frustration, Sarah received no assistance from her credit card issuer, as she had confirmed the payment based on the rental site’s assurance of authenticity. She now faces a bleak situation trying to rectify this, with a lack of help and an inability to reimburse the €1,600 charged to her credit card.
This scam, which featured a non-existent overseas property, is indicative of a wider problem in Ireland. As the autumn term approaches, criminals will likely target students rushing to secure housing, exploiting their vulnerability in pursuit of illegal profits.
Stats from Garda reveal that over 30% of all scams related to housing fraud occur in August and September. Data from the previous month shows that 12 victims lost in excess of €20,000,with the likelihood of recovery seeming rather low.
The Competition and Consumer Protection Commission (CCPC), has alerted students and their parents to be wary. It reminded people to be cautious especially when landlords claim to be out of the country and unable to show the property personally. Scammers often demand a deposit with potentially the rent for the first month, before showing the lease agreement. In addition, they could send bogus contracts and counterfeit keys to appear authentic.
The CCPC also advised prospective tenants to be suspicious of properties that appear disproportionately cheap for their location. They reminded individuals that properties must always be viewed personally and the keys tested prior to exchanging any money.
However, even individuals who adhere to these guidelines might fall victim to scams, losing hefty amounts of money. Stories have emerged of criminals who showcase properties they don’t own, having leased them on a short-term basis. These scammers provide victims with the actual keys in exchange for sizeable upfront deposits, only to vanish leaving the victims to deal with the fallout.
Regarding how scammers identify their victims, it is clear that those in the housing market will be on the radar in the coming weeks. Scammers target nearly everyone, with 94 per cent of individuals reporting at least one encounter with scammers in the last year, as per data from Bank of Ireland.
The most frequently used platform is text message (89 per cent), trailed by phone calls (75 per cent) and emails (65 per cent) and with fraudulent WhatsApp messages also becoming more common (39 per cent).
Notably, when queried about their individual risk of financial fraud, 43 per cent of respondents felt they were at low or no risk within the next six months. This figure rose to 52 per cent in the age group 18-30, suggesting either a high level of complacency or overconfidence.
The increasing incidence of investment scams is becoming a growing worry, with a rise of 76 per cent in the first half of this year, as compared to the initial six months of 2023. Most of these fraudulent endeavours originate on social media platforms, with the concerned individuals subsequently being contacted via calls and messages to further the deceit.
The fraud generally arises when individuals, disguised as authentic organisations, lure consumers with investment prospects on social media or via sponsored search results. They commonly employ tactics promising significant returns, pressurising people into hastily committing to the investment venture.
Another rising trend in this deceitful practice involves scammers re-targeting former victims by impersonating individuals intends on assisting them to retrieve their lost funds. Several warning signs to alert potential victims are present. A prompt phone call post clicking an investment product advert or unrealistic promises of instant, risk-free returns should be viewed with suspicion.
Moreover, pressure to make swift decisions or conceal transaction details suggests the person is likely not acting with your best interests at heart. “The escalation in attempts at investment fraud is currently our most troubling trend,” says the head of fraud at the Bank of Ireland, Nicola Sadlier.
“Each year, we see an increase in highly personalised attacks on consumers. Everyone should be vigilant. No complacency can be tolerated when dealing with this grave criminal activity. Being aware of the warning signs, such as too-good-to-be-true returns, and unwarranted pressure to act swiftly, is of paramount importance.”
There are various scams to be wary of:
1. Hijacked hotel reservations: As reported by Which?, the British consumer magazine, “hackers are targeting weak hotel email and booking systems, sending worryingly credible messages to travellers.” We are aware, through our readers, that these scams are prevalent in our region as well. Perpetrators break through hotel security measures, gain access to databases, and extract guest contact and booking details. Consequently, they can send counterfeit messages, texts or emails.
Victims fall prey to these scams as they are in a vulnerable position, lacking the means to differentiate between legitimate communications and hoaxes. These schemes usually target people who have active bookings with hotels, making them more susceptible to the deceit. The occurrence of scams related to Booking.com has escalated significantly, as evidenced by the rise in reported incidents from 20 in the previous year to 40 in the first quarter of 2024. In these instances, individuals frequently receive bogus prompts to ‘validate’ or ‘modify’ their credit card details on counterfeit websites that impersonate the original Booking.com.
BBroadband provider frauds, a commonplace type of scam, deceitfully claim to offer various technological enhancements, refunds, or upgrades and can severely impact victims, particularly those who are currently grappling with provider problems or are considering an upgrade.
Another prevalent scam in Ireland involves counterfeit advertisements and misleading subscriptions. People are lured by ads on social media to buy non-existent or inferior imitation goods or to register for subscription services that fail to tote up to their promises. Moreover, fraudsters adopt devious methods like pasting fake QR codes onto genuine ones in public places such as car parks and restaurants. When scanned, these hoax codes redirect users to illegitimate sites intending to rob them of their money.
Increase in account hacking has also been observed, with a remarkable number of bank account intrusions done by fraudsters. These malefactors drain the victims’ accounts swiftly following the unsuspecting clicking on links or being fooled by unsolicited calls. The crucial advice is to always exercise exceptional caution about unsolicited calls or messages, especially those claiming to represent your bank or service provider.
Investment fraud is another alarming type of scam. Numerous individuals have reported financial losses after being lured into bogus investment opportunities that promised substantial returns. The most unsettling aspect of this is that it predominantly targets financially insecure individuals who hold desperation-driven hopes of overcoming their economic dilemmas.
6: Deceitful invoicing. Cybercriminals pose as reliable suppliers, sending emails appearing harmless and professional to businesses or individuals. These mails falsely inform them of changed bank details for that specific supplier with no immediate monetary requests, just a seemingly harmless update. When a legitimate invoice eventually comes through and gets paid, it instead gets routed to an incorrect bank account, which is often only noticed after considerable time has passed.
7: High-level executive fraud. Fraudsters exploit platforms like LinkedIn, identifying CEOs and finance executives within companies. They masquerade in emails as these individuals, directing financial staff to transfer funds to certain bank accounts. The messages stress prompt action and confidentiality, using specific names of both sender and recipient to appear authentic.
8: Unknown caller fraud, also known as the Wangiri scam. With this deception, fraudsters leave a missed call on your mobile from an unknown number. Returning these calls reroutes you to costly overseas premium numbers, at your expense.
9: Fabricated phishing scams. This involves seemingly official emails from reputed companies like banks, Netflix, eBay or the National Lottery etc., demanding crucial information such as passwords or bank details, promising to upgrade security features or to dispatch funds. Extreme prudence is advised, as no credible organisation would make such a request in this manner.
10: Faked Microsoft scam. You may receive communication from someone claiming to be from Microsoft with an offer to eliminate a supposedly fatal virus on your computer for a small fee. These imposters might attempt to gain remote access to your computer or pry out sensitive financial details. These calls are always fraudulent and baseless.