FRAUD - common types

 

FRAUD - common types, 6 of the best!

 

There are always fraudsters out there willing to part you from your cash and with your SSIA money in your pocket, you don't want to become an even more attractive target.

So Bank of Ireland's Fraud Prevention Unit are taking this opportunity to remind you of six of the more common types of fraud that you should be especially careful of. This should not be considered to be a definitive list, there are many others!


-  'Boiler Room' Stock Broking Scams
-  Charity Frauds
-  Free Holidays
-  Investment Schemes offering a range of options
-  Lottery Scams
-  Pyramid Schemes
-  Queries

'Boiler Room' Stock Broking Scams

Characteristics

Overseas companies (usually unauthorised) make unsolicited contact and offer to sell shares which are 'about to go through the roof'.
The shares are completely worthless and fail to arrive (in the post). Once the initial investment is made victims are encouraged to invest further monies to capitalise on new 'Inside' information.


Steps to prevent fraud

Ask yourself, is the company authorised (by the Financial Regulator) to deal in such investments? The answer inevitably is - 'No'.
Get independent advice from a Qualified Financial Adviser.
Do not be pressurised by tight deadlines or 'special offers' offering significant discounts for early investments.
If you suspect the scheme is fraudulent, check out the situation fully before handing over monies. You should also contact your local Garda station.


Publications

www.ifsra.ie
www.financialregulator.ie

Charity Frauds

Characteristics

Customers are approached by a bogus charity, or a bogus collector, who collects money in the name of a legitimate charity and who diverts those monies for their own use. These 'Operators' are particularly prevalent at times of major disasters.


Steps to prevent fraud

Look to see the collector's licence. Legitimate charities are authorised to collect by the Gardai.
Don't respond to high-pressure tactics.
Be wary of charities that only accept cash.
If you suspect the scheme is fraudulent, check out the situation fully before handing over monies. Report such approaches to your local Garda station.


Publications

www.interpol.int
www.financialregulator.ie<

Free Holidays

Characteristics

Customers receive a phone call, or an email confirming they have won a free holiday, and to claim their prize, they must provide the telephonist with details of their credit card. The telephonist then uses the card details to charge up a range of 'extras'. The 'Free' Holiday ends up costing an 'arm and a leg'! The scheme promoters may explain that it was not necessary to purchase a ticket to enter the draw. Don't be fooled - this is a Con Job!


Steps to prevent fraud

Ignore such telephone calls, emails or letters. Do not release to strangers either personal information about yourself or any funds you may hold. Report such approaches to your local Garda station.


Publications

www.ecic.ie
www.interpol.int
www.financialregulator.ie

Investment Schemes offering a range of options

Characteristics

Investment schemes promoted by unlicensed or unauthorised traders, usually offering Gold, Diamonds, Oil, Property etc. for sale. The scheme promoters are usually based outside the country. Investors are asked to send their monies to an offshore bank. (Note that the Financial Regulator does not regulate commodities such as Gold, Oil and Diamonds, etc.)


Steps to prevent fraud

Ask yourself, is the company reputable and authorised to deal in such investments? The answer inevitably is - 'No'.

Get independent advice from a Qualified Financial Adviser.
Do not feel pressurised by tight deadlines or 'special offers' offering significant discounts for early investments.
If you suspect the scheme is fraudulent, check out the situation fully before handing over monies. You should also contact your local Garda station.


Publications

www.ecic.ie
www.financialregulator.ie

Lottery Scams

Characteristics

Customers receive an email or letter stating they have won the lottery, and to claim their prize, they must complete and submit a claim form accompanied by a fee. Alternatively, to receive their 'prize', they might be asked to open a bank account abroad, in a 'bank' that demands a deposit of (say) €3,000. The scheme promoters may explain that it was not necessary to purchase a ticket to enter the draw. Don't be fooled - this is a Con Job!


Steps to prevent fraud

Ignore such emails, letters or telephone calls. Do not release to strangers either personal information about yourself or any funds you may hold. Report such approaches to your local Garda station.

Publications

www.ecic.ie
www.interpol.int
www.financialregulator.ie

Pyramid Schemes

Characteristics

Pyramid schemes claim to offer high returns over a short period (e.g. 5% to 100%+ per month) based primarily on the investor recruiting others to join the scheme. Some of the money belonging to 'late entrants' to the scheme is used to pay handsome dividends to early investors, thereby creating the impression that the scheme is legitimate and actually does pay high returns. Investors may be asked to send their monies to an offshore bank (but not always!).

Steps to prevent fraud

Beware any scheme which does not have a specific product/investment to sell,particularly if you are asked to encourage others to join, or to sell a product at an inflated price.

Ask yourself, is the company authorised (by the Financial Regulator) to deal in such investments? The answer inevitably is - 'No'.
Get independent advice from a Qualified Financial Adviser.
Do not be pressurised by tight deadlines or 'special offers' offering significant discounts for early investments.
If you suspect the scheme is fraudulent, check out the situation fully before handing over monies. You should also contact your local Garda station.


Publications

www.dti.gov.uk
www.financialregulator.ie

Queries

Queries in relation to any of the above Fraud related matters may be forwarded to Bank of Ireland at commonfraud@gia.boi.com
or,
Alternatively the Garda Siochana (Irish Police) may be contacted at www.garda.ie (or phone 00 353 1 666 3740)

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