SSIA Holders Warned Against 'Get Rich Quick' Schemes

by Philip Morton, Investors Offshore.com

16 June 2006

Bank of Ireland last week congratulated the first batch of maturing SSIA holders, and also issued a warning to all SSIA customers with matured funds to be wary of ‘Get Rich Quick’ schemes which may be offered to them by fraudsters.

The Bank published details of some of the more common types of fraud which may be awaiting those with newly matured plans.

"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. There is substantial risk involved and we would advise all SSIA holders to ensure that they don’t become victims of such frauds”, explained Gerry Gibson, Manager of the Group Fraud Prevention Unit with BoI.

“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. The potential is substantial and if only 0.1% of the maturing funds were to be embezzled, this would amount to approximately EUR16m. The key message to the public is to be vigilant and ensure that any funds are invested in a regulated institution,” he added.

According to BoI, six of the more common types of fraud are:

• Pyramid schemes;
• Investment schemes offering a range of options;
• ‘Boiler room’ stock broking scams;
• Lottery scams;
• Free holiday offers; and
• Charity frauds.

Bank of Ireland advised those who are planning to re-invest their savings to ensure the intermediary or financial institution used is a reputable entity, preferably authorised by the Irish Financial Regulator.

Recommended