SSIA savers warned about fraudsters

Savers whose SSIA funds have matured were today warned to beware of fraudsters looking to take their windfalls.

Savers whose SSIA funds have matured were today warned to beware of fraudsters looking to take their windfalls.

Bank of Ireland has published information on the most common types of fraud such as pyramid schemes, bogus investment schemes and 'boiler room' stockbroking scams.

Gerry Gibson, manager with the fraud prevention unit at Bank of Ireland, said: "It is expected that con-artists will do their utmost to capitalise on the surplus money that will enter the economy.

"Many bogus investments are presented as offering short term, low risk, and high value returns. The reality turns out to be long term, high risk and no value returns.

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"There is substantial risk involved and we would advise all SSIA holders to ensure that they don't become victims of such frauds."

"It is virtually impossible to put a figure on the amount of money taken annually by fraudsters. However, anecdotal evidence would suggest it is on the increase and it is very likely that fraudsters will be keen to target maturing SSIA funds," Mr Gibson said.

The bank urged investors to check the credentials of the financial institution and any investment intermediary.

Six of the more frequent types of scams include: pyramid schemes, investment schemes offering a range of options, 'boiler room' stockbroking scams, lottery scams, free holiday offers and charity frauds.

The pyramid schemes claim to offer high returns over a short period, and are based on the investor recruiting others to join the scheme.

'Boiler room' stockbroking scams involve overseas companies making unsolicited contact offering shares that are about to soar in price but turn out to be completely worthless.

The Office of the Director of Consumer Affairs has already warned scam activity was expected to increase with the maturing of the accounts.

Consumers were also urged to be aware of phone-calls, e-mail and letters offering special promotions, prizes or free holiday offers in a bid to get bank account or credit card details.

PA