AI Scams Drive 20% Increase in Investment Fraud, €20 Million Lost in 2025

AI-generated scams promoting fake state-backed investment schemes contributed to a 20% increase in investment fraud in 2025, resulting in over €20 million in losses. These scams often use AI-generated images or videos of prominent figures to encourage clicks on links for fraudulent schemes. The Banking & Payments Federation Ireland (BPFI) identified this as a growing trend, particularly targeting individuals in their 50s seeking pre-retirement investment opportunities.

Niamh Davenport, BPFI head of financial crime, noted fraudsters exploit news coverage of planned state-backed schemes to appear legitimate, promising guaranteed returns or monthly income. Victims are often pressured to act quickly. Detective Superintendent Michael Cryan from the Garda National Economic Crime Bureau stated individual losses can range from €250 for crypto scams to over €10,000 for bond and share schemes. Victims are typically ordinary people saving for retirement, not necessarily wealthy individuals.

Scammers encourage consumers to register online, then a «financial advisor» pressures them for an immediate «security deposit.» Funds are quickly transferred overseas. Age Friendly Ireland and FraudSMART have partnered to raise awareness, urging anyone who suspects they are a victim to contact their bank and An Garda Síochána immediately. Catherine McGuigan of Age Friendly Ireland emphasized that these sophisticated scams are difficult to spot, and victims should not feel embarrassed.