As a seasoned researcher with a focus on financial crimes and digital assets, I can’t help but feel a sense of deja vu when reading about the rampant crypto investment scams plaguing Ireland and other regions worldwide. The modus operandi of these fraudsters is as predictable as a well-rehearsed script, yet they continue to prey on unsuspecting victims who are lured in by the allure of easy money.
Approximately half of the reported instances of investment fraud in Ireland have been linked to cryptocurrencies, according to a warning issued by the country’s main law enforcement agency.
Based on a report from the Irish Independent, it’s been found that around 44% of all fraudulent investment activities in Ireland, spanning from January 2020 to August 2024, were linked to Bitcoin (BTC) and other digital currencies. The majority of these cases involved individuals pretending to be investment managers, deceiving victims by duplicating webpages and luring them through online and social media advertisements.
From January 2020 to August 2024, scammers successfully swindled more than 1,117 individuals out of approximately $83 million (equivalent to €75 million), with around €13.5 million taken this year alone. The greatest losses were reported in the year 2023, amounting to €28 million, a sum surpassing the combined total for both 2021 and 2022.
The report detailed one crypto-related incident where a victim saw an advertisement on a social media platform offering an investment opportunity into a mobile app-based trading platform. Upon signing up for the scheme, the scammers contacted the victim and socially engineered him into transferring €45,000 (roughly $50,000).
The fraudsters subsequently told their target that their supposed earnings from investments totaled around €727,000 ($808,620), which were reportedly stored as USDC stablecoin within an Ethereum-based Atomic Wallet. Yet, when the victim attempted to withdraw the money, they were instructed to pay an extra $40,000 for what was described as unpaid taxes in order to access the funds.
Crooks deceive people by telling them they owe a fee or tax to get access to money or earnings, which is actually a lie. This tactic is often used in investment scams, as demonstrated by the warning from Washington State’s Department of Financial Institutions in July. In this instance, the con artists lured victims into suspicious cryptocurrency investments, but when they tried to withdraw their profits, the accounts were frozen and more money was demanded.
Michael Cryan, Head of the Garda National Economic Crime Bureau, cautioned that swindlers often aim for “regular, upright individuals.” He advised exercising care when sending funds across international borders.
“Crafty con artists running deceptive investment scams often seem persuasive by pretending to possess exclusive information. However, these individuals are professional swindlers who have memorized a carefully planned routine.”
Michael Cryan, Detective Superintendent of the Garda National Economic Crime Bureau
In recent times, it’s become more common for fraudulent activities related to cryptocurrency investments to surface across different locations. These con artists lure victims with tempting offers of high profits. One of the most significant actions against these scams recently was led by the Australian Securities & Investments Commission, who managed to shut down 615 websites associated with crypto investment fraud.
Previously, I found myself embroiled in a legal tussle with Meta (the company behind Facebook), due to an escalation of ads on their platform peddling dubious cryptocurrency schemes.
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2024-08-23 13:08