As the crypto market experiences a prolonged downturn, the prevalence of cryptocurrency-related scams has dwindled, leaving behind a more discerning investor base committed to due diligence. This shift in dynamics has prompted scammers in Ireland to pivot towards targeting traditional banking customers, a trend that has raised alarms among authorities.
According to a recent report by the Irish Independent, 2023 witnessed a staggering loss of nearly 20 million euros ($21.8 million) to scammers impersonating banking officials. Victims have reported being contacted through phone calls and emails, with fraudsters claiming affiliation with reputable British banks or trading houses.
In response, Irish law enforcement agencies have launched investigations into a spate of similar fraud cases. Notably, one successful operation resulted in the recovery of 2 million euros ($2.1 million) from a scammer. Since January 2023, approximately 4 million euros of the total 20 million euros lost to banking scams have been reclaimed.
Scammers Pivot Tactics
Contrary to the peak of scam activities, where crypto-related schemes accounted for 95% of cases, these incidents have now taken a backseat. Instead of intricate crypto-related plots, scammers are adopting a more straightforward approach, replicating banking websites and promotional materials to deceive unwitting victims into relinquishing their savings.
Detectives have traced over 20 bank accounts linked to these fraudulent operations in the United Kingdom, though efforts to dismantle the network remain ongoing. The Bank of Ireland has issued a cautionary advisory to its customers, urging them to exercise vigilance when dealing with alleged banking personnel pressuring them into hasty decisions—a common tactic employed by scammers.
Meanwhile, an Australian bank has raised a red flag on the global stage, asserting that many scams now involve cryptocurrencies. At a recent panel discussion during the Australian Blockchain Week, Sophie Gilder, managing director of blockchain and digital assets at Commonwealth Bank, Stated:
“One in three of the dollars that are scammed from Australians touch crypto, one in three. So it’s the single largest lever that we have to reduce this impact on our customers.”
Nigel Dobson, the Banking Services Portfolio Lead at ANZ, pointed to data from the Australian Financial Crimes Exchange, suggesting that this figure may even be as high as 40%. The crypto market’s allure for scammers appears to rise, even as traditional banking scams pose a growing threat in Ireland.
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