Limerick man falls victim to investment fraud
A LIMERICK investor has reported that he was a victim of investment fraud.
The man invested a significant amount of funds in an entity outside of the EU which he believed was a bone fide investment.
Unfortunately, it wasn’t a bone fide investment, it was a scam and he lost all the funds.
Investment fraud happens when people are persuaded or induced to make investment decisions, where the money invested is used for purposes not intended or where there is no business opportunity at all.
The investor is deceived into investing in something which is misrepresented. There are generally promises of fast enormous returns, it’s a once in a lifetime opportunity,
Garda John Finnerty from Henry Street garda station said there has been an increase in reports of investment fraud throughout the country.
"The vast majority of these involve crypto currencies – but this type of crime is believed to be under reported due to embarrassment, not wanting close family members to know, a knowledge that the money is gone and sometimes a hope being held out that the investment will come good in the end".
Garda Finnerty also issued advice to people on how to avoid falling victim to these types of scams.
"Always seek independent financial and legal advice before making any investments and heed this advice.
"Don’t respond to cold calls and be wary of unsolicited emails / texts / calls / offers / advice.
"Never ever give away your banking codes, pins, passwords, or any other personal data.
"Only use regulated entities. All financial services providers which hold an authorisation from the Central Bank of Ireland , to provide financial services in Ireland are listed in the Central Bank Registers section.
"Prior to entering into a financial services transaction, members of the public can check the regulatory status of the firm they are dealing with investors need to be aware that if they deal with unregulated firms they will not have access to investor compensation schemes, the services of the Financial Services Ombudsman.
"Remember, if an investment sounds too good to be true it generally is".