AI fraud scams Co Down victim out of £250,000

A person in Northern Ireland was scammed out of £250,000 (approximately €291,000) by what police have described as a “sophisticated” AI-generated investment fraud.

It began after the Co Down-based victim responded to an online video featuring a well-known personality from the financial sector.

It offered an investment opportunity with “significant” returns.

After the victim had invested a relatively modest amount, they were contacted via Whatsapp and encouraged to put in more.

The fraudsters then persuaded the person to create multiple online accounts and got remote access to their computer by pretending to help them with the investment.

The victim was encouraged to borrow additional money to pour into the scheme.

Funds were then transferred to accounts controlled by the criminals.

“This was a sophisticated and substantial fraud in which criminals gradually gained the victim’s trust before encouraging increasingly significant payments,” a police spokesperson said.

“Fraudsters can create extremely convincing advertisements, websites and communications. The use of artificial intelligence means that videos, voices and apparent endorsements from recognisable people can also be fabricated.

“An online advertisement or apparent celebrity endorsement should never be regarded as proof that an investment is genuine.

“Please be particularly cautious if you are contacted through messaging services and encouraged to transfer money, open additional accounts, borrow to invest, allow somebody remote access to your computer or make further payments in order to release an investment,” the police spokesperson said.

“Never allow yourself to be rushed into making a financial decision. Independently verify who you are dealing with and, where appropriate, check that a firm or individual offering financial services is authorised by the Financial Conduct Authority.

“If you are concerned about an investment involving a family member or friend, have that conversation with them. A timely conversation or independent check could prevent further loses,” they added.

The harm caused by fraud and exploitation

Superintendent Joanne Gibson, chair of the Scamwise Partnership, said: “Taking a moment to stop and check any financial activity can make a real difference.

“The Police Service of Northern Ireland will use every available resource to protect individuals and communities from the harm caused by fraud and exploitation, but I would also ask family members to take the time to have a conversation with their family members about fraud in order to try and safeguard them against criminals.

“We know that this type of crime can have a far-reaching impact, but we can all work together to protect and prevent this from happening to those we care about.

“Fraudsters can be extremely convincing and use a variety of scenarios to make people believe them to be genuine.

“They are master manipulators,” added Ms Gibson.

The public is being urged to stop and think before transferring money or disclosing financial details to someone they don’t know.

Police said reputable financial operators would always give potential customers time to verify and would never pressurise anyone into acting quickly.