A SURGE IN AI scams promoting bogus state-backed investment schemes helped contribute to a 20% increase in investment fraud last year, with losses totalling over €20 million.
The scams typically feature fake, AI-generated images or videos of high-profile politicians and businesspeople and encourages viewers to click a link to register for a fake scheme.
The Banking & Payments Federation Ireland (BPFI) said this is the latest trend in an ongoing wave of investment fraud in recent years.
These scams particularly target people in their 50s who may be looking for investment opportunities ahead of retirement.
New figures from An Garda Síochána show a more than 20% increase in reports of investment fraud in 2025 compared to 2024, with more than €20 million in losses.
This upwards trend is continuing into 2026.
Niamh Davenport, head of financial crime with BPFI, described the trend as “worrying”.
Tánaiste Simon Harris recently proposed introducing a personal investment account aimed at encouraging people to move savings into stocks and other investments.
Davenport warned that fraudsters are “exploiting recent news coverage of a planned state-backed savings and investment scheme to make their adverts appear legitimate”.
Explaining some of the tactics fraudsters used, Davenport noted that people are often pressured to act quickly.
She added that scammers typically promise guaranteed returns or a guaranteed monthly income.
And while these scams are targeted at people of all ages, recent trends show that many victims of investment scams like these are in their early 50s.
Davenport said most investment scams follow a similar pattern.
Consumers are encouraged to click on a registration link and asked to fill in a short form with their contact details to receive more information.
They may then receive a call from a so-called “financial advisor” urging them to make an immediate “security deposit” to secure their place on the scheme.
Once the victim is convinced and has authorised the payment, the criminal will quickly transfer the money through multiple accounts, often overseas, where it is then cashed out.
Michael Cryan, detective superintendent at the Garda National Economic Crime Bureau, noted that individual losses can start anywhere from €250 on a crypto scam.
However, for bigger investment scams involving bonds and shares, it can start from €10,000 and increase significantly beyond this.
And while the amounts are high, Cryan said “victims are not necessarily wealthy individuals”.
“They are often ordinary people who have worked hard to build up a pension or savings and are looking for an opportunity to strengthen their finances ahead of, or during, retirement,” said Cryan.
He urged everyone, particularly those aged over 50, to be alert to these scams and to contact their bank and gardaí immediately if they believe they may have fallen victim to investment fraud.
Meanwhile, Age Friendly Ireland has partnered with FraudSMART, BPFI’s fraud awareness initiative, to raise awareness and help people recognise the warning signs.
Catherine McGuigan, chief officer of Age Friendly Ireland, said people “should not feel embarrassed if they are caught out”.
“These scams are designed to appear genuine and can be very difficult to spot, which is why any of us can fall victim,” said McGuigan.
She appealed to anyone who has shared personal information or transferred money and now realise it might be a scam, to report it to their bank and gardaí as soon as possible.