At the conclusion of February, a reader identified as Joan stumbled upon an article on Facebook from a reputable Irish news source. The article showcased how a well-known Irish television personality had amassed a significant sum of money through a strategic investment in cryptocurrency. It featured quotes from other prominent Irish figures who had also experienced financial gains in the crypto market.

Unaware of the unfolding narrative, Joan delved deeper into the content. Intrigued, she clicked on a link within the article and proceeded to sign up to receive a call. Within minutes, a gentleman contacted her, inquiring about her age. Upon learning that she was in her 50s, he extended a discounted offer for a deposit, reducing the usual €250 amount to €200. Satisfied with the arrangement, Joan provided her credit card details for the payment.

The individual on the call elaborated that the platform operated using Artificial Intelligence, assuring Joan that her role was simply to observe her investment grow. He assured her that an account manager named Max would reach out the following day to facilitate her trading setup.

True to his word, Max contacted Joan and guided her to download an app, revealing that her initial €200 had increased to €208. He outlined his 10% commission structure based on her profits, scheduled for deduction in mid-April.

As their interactions progressed, Max discussed potential profits based on varying investment amounts, emphasizing the soaring value of Bitcoin and projecting significant returns by mid-April 2024. Despite Joan’s inquiries about the company’s location, Max claimed it was based in Switzerland. They maintained regular communication, with Max updating Joan on her profits every 2-3 days.

Approximately two weeks later, Max requested identification documents for compliance purposes. Joan complied, providing images of her driver’s license as requested. By the end of March, Joan had escalated her investment to €8,500.

Concerned about tax implications, Joan sought clarity from Max regarding profit withdrawal and taxation. Max explained the tax process in Switzerland, assuring Joan of a tax certificate and outlining the tax rates. Their exchanges extended to personal messages, including holiday greetings, fostering a sense of trust between them.

However, a conversation with a friend prompted Joan to investigate further. Alarmed by scam warnings upon Googling the company, she decided to test Max’s intentions by requesting a withdrawal. Max’s response, requesting a substantial sum for tax and commission, raised suspicions.

Upon expressing her inability to cover the additional costs, Joan aimed to withdraw her initial deposit. Max discouraged her, warning of potential losses. Joan stood firm, citing financial constraints and the need for her €8,500 deposit.

Subsequently, Max evaded communication, deleting their Telegram conversations and restricting access to Joan’s investment account. Realizing the grim reality of falling victim to an investment scam, Joan’s funds were likely irretrievable.

FraudSmart’s Niamh Davenport highlighted the escalating complexity of investment scams, including those involving cryptocurrencies. She emphasized the importance of promptly reporting fraud to both financial institutions and law enforcement for investigation and potential fund recovery.

In light of the heightened risk posed by fraudsters targeting individuals directly, Davenport stressed the significance of vigilance. She advised exercising caution with online advertisements and sponsored content, recommending independent verification of details before engaging with unfamiliar platforms or offers.