Ireland has been experiencing a surge in cryptocurrency investment fraud cases, with the national police force reporting that nearly half of all reported investment fraud incidents involve digital currencies. According to the Irish Independent, between January 2020 and August 2024, 44% of investment fraud cases in Ireland were related to cryptocurrencies such as Bitcoin (BTC). These scams typically involve fraudsters posing as investment managers and using cloned websites and online advertisements to target victims.
The impact of these scams has been significant, with over €75 million (approximately $83 million) stolen from more than 1,100 victims during this period. In 2024 alone, scammers managed to steal €13.5 million from unsuspecting individuals. The year 2023 saw the highest losses, with scammers making off with €28 million, surpassing the combined total for 2021 and 2022.
One particular incident highlighted in the report involved a victim who came across an advertisement on a social media platform offering an investment opportunity in a mobile app-based trading platform. The victim signed up for the scheme and was convinced by the scammers to transfer €45,000 (around $50,000). The scammers then claimed that the victim’s investments had generated over €727,000 (approximately $808,620) in profits, supposedly held in a stablecoin called USDC within an Ethereum-based Atomic Wallet. However, when the victim attempted to withdraw the funds, they were asked to pay an additional $40,000 in “dirty tax” to access their supposed profits.
“Dirty tax” is a tactic commonly used by scammers to deceive victims into believing they need to pay a fee or tax to access their funds. This type of fraudulent activity is prevalent in investment scams, as seen in a warning issued by the Washington State Department of Financial Institutions in July. Victims are lured into dubious crypto trading investments, only to have their accounts frozen when they try to cash out, with scammers demanding additional funds.
Michael Cryan, Detective Superintendent of the Garda National Economic Crime Bureau, emphasized the importance of caution when transferring money internationally, especially in the realm of cryptocurrency investment schemes. He warned that fraudsters often target “ordinary, decent people” and use persuasive tactics to gain their trust.
“The fraudsters involved in fraudulent investment schemes will sound convincing and claim to have insider knowledge but they are career criminals that are following a well-rehearsed script,” said Cryan.
Cryptocurrency investment scams have become increasingly prevalent worldwide, with fraudsters enticing victims with promises of high returns. In a significant crackdown, the Australian Securities & Investments Commission shut down 615 websites linked to crypto investment scams, highlighting the global nature of this issue. Additionally, Australia’s competition regulator took legal action against Meta for allowing misleading Facebook advertisements promoting crypto scams.
Subheadings:
The Rise of Cryptocurrency Investment Frauds in Ireland
The Impact of Crypto Investment Scams on Victims
Strategies to Avoid Falling Victim to Cryptocurrency Investment Frauds
As cryptocurrency continues to gain popularity and acceptance, it is crucial for investors to be vigilant and educate themselves on the risks associated with digital assets. With the rise of fraudulent schemes targeting unsuspecting individuals, staying informed and cautious is key to protecting oneself from falling victim to cryptocurrency investment scams.
