A FRESH WAVE of fraudulent investment advertisements is circulating widely on social media.

The latest scams, appearing on Facebook and Instagram, present themselves as legitimate bond and deposit opportunities from European banks.

According to the bank, at least two dozen variations of these adverts have been detected in recent weeks, reaching nearly 43,000 people across the European Union.

The ads usually have “professional language and convincing appearance”, according to Bank of Ireland, promising higher than average returns on fixed-term investments.

Examples of online investment scams. Bank of Ireland Bank of Ireland

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.

One scammer even insisted their firm was recognised among the ‘top 10 independent investment companies in Europe’ and supervised by the Swiss regulator FINMA.

The structure of the scheme means the consequences are often delayed – many of the fraudulent products promise returns after six or twelve months, leaving investors unaware until their supposed contract matures, by which time the operators have vanished.

Nicola Sadlier, Head of Fraud at Bank of Ireland, described the surge as one of the most concerning trends in financial crime.

“The growth in investment fraud is one of the most concerning trends we are seeing,” Sadlier said. 

“The level of highly personalised targeting of consumers continues to grow year on year, and everyone needs to be on their guard. We are urging consumers to ignore any unsolicited investment offers online, and always verify financial products through their bank or trusted financial advisor.”

She added that customers should make sure that the investment firm in question is regulated by checking the Central Bank of Ireland register.

“If a firm is not listed, do not invest. We also recommend to check for published warning notices,” Sadlier added.