Earlier this month, Pricewatch was contacted by a man who introduced himself as Darren. He had some ostensibly excellent news for us. He told us that some Bitcoin, which we had apparently purchased, won or been given in 2017, had significantly increased in value and was now worth over €130,000. However, due to inactivity on the account, the funds had been locked, and we needed to immediately act to release them.
Darren proposed to send an email to initiate a process to enable Pricewatch to reactivate the account, asserting, “after that we can withdraw the money”. The phrase “we can withdraw the money,” was, arguably, the only truthful statement Darren made. In this context “we”, referred to Darren and his illicit associates and the money was not imaginary virtual currency, rather it was tangible real currency from my bank account.
Pricewatch had some time available and, rather than sending Darren a terse, profanity-ridden message, we expressed our delight and asked him to guide us on the next steps. He paused, then advised that he had to pass us to his superior. He implored us to not hang up.
Shortly after, another voice appeared. “Hello, can you hear me? I am Jimmy Hayes, Darren’s boss; how are you?” he stated.
We were curiously contemplating the same. A cold call this certainly was not. Both Darren and Jimmy Hayes had my mobile number, as well as my name, which could have lent some credibility to the call. Despite this, we have been on the receiving end of such calls before and, while it is slightly disconcerting that my name and number are circulating in disreputable corners of the dark web within some form of database, there isn’t much we can do regarding this matter.
To reiterate about Jimmy Hayes, he clarified that Darren was a novice who struggled to manage our account. He asked us if we had any points of confusion or if we wanted a comprehensive overview from the start. Choosing the latter was just a bit of fun for us.
Jimmy Hayes revealed that the bitcoin account was established on October 6th, 2017. His confirmation seemed to bewilder us, but he further elaborated that we may not have directly purchased the bitcoin. It could have been won or received as a promotional gift online. His clarifications were somewhat unclear, but it could make sense to someone with a highly trusting personality.
For Jimmy Hayes, faith was critical. He firmly believed that “transparency breeds trust”. He persistently guided us through the procedure to convert the frozen bitcoin into tangible money and how to deposit it into our account.
When he noted that his e-mail, which included all the necessary links to kick-start the process was being sent via a Gmail instead of a corporate platform, we were taken aback. He justified this by stating that they couldn’t access their professional email accounts due to an ongoing issue with Microsoft software. He was using Gmail as an emergency measure.
Despite repeated attempts, his emails seemed to have not landed in our inbox. Eventually, realising that something was off, he disconnected the call abruptly. This left us slightly annoyed because we didn’t get an opportunity to confront him. However, the consolation was wasting a good chunk of his day.
In retrospect, the scam that Darren and Jimmy tried to operate is conspicuous. It’s alarming to think how easily some people can fall prey to such schemes. Based on current data from the Banking and Payments Federation Ireland, swindlers took nearly €100 million from Irish customers last year, noting a 16% rise since 2022.
Card fraud comprised 95% of the illicit transactions, equating to approximately €35.2 million or 36% of total losses. There were fewer cases of other kinds of fraud, however, consumers still lost a considerable amount of money due to them.
Criminals exploit mobile or online banking details of individuals to make unauthorised electronic transactions, which account for only 3 per cent of all transactions, but result in losses of up to €33.8 million or 34 per cent of total losses. A different kind of fraud known as authorised push payment fraud, where criminals deceive individuals into transferring money to a fraudulently controlled account, forms just 1 per cent of fraudulent transactions, but culminates in a loss of over €18 million. This type of fraud has significantly amplified in terms of volume and value since 2022.
A reader named Sarah shares her harrowing experience with a prevalent fraud in coming days – the accommodation scam. After moving to the Middle East from Ireland, she lost €1,600 to a scam while searching for a place to stay. She found a rental listed on an app and reached out to the agent via WhatsApp. She was directed to a familiar long-term rental booking platform. After verifying the authenticity of the listing with the platform, she made the payment but received no confirmation.
It turned out that the criminals had duplicated the booking platform’s interface and posted a fake property to dupe her. The bank denied any financial aid as she had authenticated the payment, thinking it was a legitimate transaction. Now faced with the pressing issue of repaying her credit card debt of over €1,600, Sarah finds herself at her wit’s end.
While Sarah was tricked with a property that didn’t exist in a foreign country, there are various criminals operating within Ireland, looking to trick students desperate for accommodation ahead of the upcoming autumn term.
Data from the Garda reveals that over 30% of all fraudulent housing schemes occur in August and September, with a loss of over €20,000 reported last month alone. The likelihood of recovering these funds is slim. The Competition and Consumer Protection Commission (CCPC) has therefore issued a cautionary notice to students and parents, emphasizing the warning signs to look out for when seeking accommodation.
Extra prudence is required if a prospective landlord claims they are unavailable to show the property due to being overseas. It is commonplace for fraudsters to ask for an upfront deposit and potentially the first month’s rent without showing a lease. To make their deception more convincing, these con artists may present fabricated contracts or duplicate keys.
The CCPC also urges potential tenants to be sceptical of listings that appear disproportionately cheap for their area. A property should always be viewed in person and its keys thoroughly tested before any money is exchanged.
Nonetheless, even a vigilant individual can fall victim to these scams. There have been instances where criminals rent a property briefly, show it to potential tenants, then present fake contracts and ask for sizeable deposits in exchange for the actual keys. After receiving what they want, they vanish, leaving the victims to deal with the aftermath.
Fraud victims are not solely those seeking rental properties. Recent figures from the Bank of Ireland indicate that 94% of people have at least experienced minor contacts with con artists over the last year. The favoured methods for these scams are through text messages (89%), phone calls (75%), and emails (65%), with fraudulent WhatsApp messages also on the rise (39%).
Despite these alarming figures, 43% of the surveyed individuals believe they have minimal to no risk of falling victim to fraud in the coming half year. This confidence grows to 52% among individuals aged 18-30, showing a worrying level of complacency or overestimation of their abilities to spot scams.
The rising trend of investment fraud is becoming an increasing worry, as instances of such attempted scams have skyrocketed by 76% during the first half of the year relative to the corresponding period in 2023.
Predominantly, these fraudulent acts tend to originate on social media platforms where potential victims are contacted, and then pursued through telephone calls and messages in order to perpetuate the fraud. The scam typically unfolds as swindlers impersonate valid businesses and propose enticing investment deals to consumers, either on social media or within sponsored search results, often promising high yields. Victims are then subjected to immense pressure to rapidly commit to these so-called investment opportunities.
A growing fraudulent tactic is re-targeting, where remorseless scammers approach prior victims, masquerading as individuals attempting to assist them in recuperating their lost funds.
Similar to rental scams, there are certain indicators individuals should vigilantly look out for. Many would be aware that financial firms don’t have the best communication records, so an instant call following a click on an investment advertisement on social media or within sponsored search results should act as a caution. Promises of rapid and lucrative gains with negligible risk should also raise suspicion.
Moreover, any pressure to make swift decisions or veiled threats of missing out, in addition to requests to maintain transaction secrecy, are likely signs of detrimental actions that are not in your favour.
Nicola Sadlier, Bank of Ireland’s Head of Fraud, comments on this worrisome trend, stating “The escalation in attempts to defraud investors is currently the most alarming trend we observe.” “Consumer targeting strategies are becoming more refined over the years, and everyone needs to stay vigilant. With regard to this severe crime, complacency is dangerous. Recognising the warning signs – like improbable returns and haste in action – is absolutely critical.”