What are financial scams?

Financial scams are deceptive schemes designed to trick you into giving away your money.

Scams can take many forms, including investment scams, ransomware, romance scams, identity theft, and more.

Scams have a significant impact. You can get help if you need it on the the Garda website, or contact CoinJar Support if you believe you've been involved in a scam.

Before you send your money anywhere, whether it be to someone else, an investment, or a company, either local or international, remember that any click can be a trick.

Why are scams dangerous?

Scams can ruin your life

Being tricked by a financial scam can have serious and lasting effects.

You will lose the money you sent, which may have been a significant amount. Your money is impossible to recover because scammers use complex methods to cover their tracks, and there are many challenges involved in tracking your money down.

Beyond the immediate loss of money, the emotional impact can be harsh. It can lead to stress, depression, and a profound sense of betrayal, which may erode your trust in others.

Scams can cost you more than money

Falling victim to a financial scam can shatter your personal relationships as you grapple with the shame and guilt of being deceived. The financial strain can cripple your ability to cover daily expenses, save for future goals, or secure a comfortable retirement.

In extreme cases, the resulting financial instability may force you to borrow desperately from friends and family, or it could lead to total financial collapse, leaving you struggling to afford even the most basic necessities.

Crypto and scams

Scammers trick victims into sending cryptocurrency. This makes scams even more dangerous because once you send your crypto, you can't get it back. Unlike banks, crypto transactions are permanent and have no refunds.

Scammers create urgent and convincing stories to trick people into sending money quickly without checking. The anonymous nature of cryptocurrency makes it almost impossible to catch scammers.

If you send cryptocurrency - it's gone forever.

What are some common scams?

Investment scams

Investment scams often start with an unexpected email, text message or phone call from a stranger. To protect yourself when sending funds from CoinJar, ask yourself:

• Have I received unexpected emails, text messages, or phone calls from strangers?
• Are there offers guaranteeing high returns for a minimal initial investment?
• Have I been asked to pay taxes with funds sent outside of Ireland?
• Am I being asked to invest with companies located outside Ireland? (Be cautious even if they use a name of an Irish company)
• Am I receiving persistent or harassing phone calls from international numbers or so-called account managers?
• Have I been allowed to make small withdrawals to build trust and encourage larger investments?

If you answered "yes" to any of these questions, you might be involved in a scam.

Recovery / Refund scams

Recovery scams often occur after falling victim to an investment scam. The scammers may use their knowledge of your involvement in an investment scam to trick you into believing they can recover your money. To protect yourself when sending funds from CoinJar, ask yourself:

• Have I been promised the recovery of funds invested with an overseas company?
• Is the recovery company registered or located in Ireland?
• Was I contacted out of the blue or in an unsolicited manner about the recovery by a stranger?
• Am I being required to pay any recovery fees upfront?

If you answered "yes" to any of these questions, you might be involved in a scam.

Romance scams

Romance scams often occur through online dating apps and websites, although they can begin over social media, text message, email or phone call. In romance scams, scammers exploit individuals seeking romantic partners. To protect yourself when sending funds from CoinJar, ask yourself:

• Have I been asked or coached to open a CoinJar account?
• Do I have strong feelings for this person, which may make it easy to forget about being cautious about their legitimacy?
• Have I been asked to download remote access software like AnyDesk or TeamViewer on my devices?
• Is the person I'm communicating with currently overseas or claiming to be in Ireland?
• Have I only spoken to this person online?
• Have I received requests for emergency funds to be sent via Bitcoin (BTC) rather than EUR?
• Has anyone asked me to deposit small amounts of funds into my Irish bank account to purchase cryptocurrency?
• Has this person asked me to pay for their travel or accommodation?

If you answered "yes" to any of these questions, you might be involved in a scam.

Remote Access scams

Remote access scams often begin with an unsolicited message or phone call that appears to be from a legitimate company, such as your phone or internet service provider. Scammers use this tactic to gain control of your devices and access your personal information. To protect yourself when sending funds from CoinJar, ask yourself:

How can I protect myself from scams?

Download our checklist

You can use this checklist any time you need to send money somewhere else. The checklist is not a foolproof process, but a guide to identify common red flags associated with financial scams.

Download the checklist here 

Do your own research

You can do your own independent research by:

• searching for the name of the recipient on the web
• if available, reviewing the recipient's terms of service/privacy policy
• checking to see if the recipient is registered, or holds an appropriate regulatory licence in the region they operate from
• reading other people's reviews of the recipient's services
• asking a friend or family member to help review the situation and offer a fresh look at the recipient
• asking for assistance from the team at your bank or financial institution

Has a stranger contacted you?

If someone contacts you asking you to become involved in cryptocurrency, ask yourself the following:

• Do I know who this person is?
• Why have they contacted me?
• Have they advised they can make large or high yield returns on my investment?
• Is the service they are referring me to regulated in the country I live in?
• Are they asking for remote access to my device or computer?
• Are they asking me to invest my money, or asking me to transfer money on their behalf?
• Is what they are saying true?

When a stranger contacts you, you should never provide:

•  
  • remote access to your computer
  • information that should be kept private, such as email addresses and/or passwords such as those that grant access to your email inbox or your bank account
  • information on your financial status or any personally identifiable information (such as identity documents)

Warning signs

There are some immediate warning signs that you might be involved in a financial scam, including but not limited to where a stranger:

• contacts you via a social media or messaging platform
• begins a conversation that quickly steers towards your financial status and getting started with investing
• claims that you need to provide them with a fee in order to release an amount of money they allege you own
• alleges you have a debt to pay and must pay it with a sense of urgency
• claims that they can make you a profit by making trades on your behalf but the trading platform only supports cryptocurrency
• requests remote access to your devices
• requests access to your identity documents
• requests access usernames/passwords for banking services

More resources

You can also visit:

• Citizens information on how to avoid scams.
• Use CheckMyLink to verify the authenticity and safety of online shopping websites. It is managed by Cyber Skills, in partnership with ScamAdviser and An Garda Síochána. You can check that the website you are using is genuine and free from harmful software by providing the website URL.
• You can stay aware of scams using government agency warnings, such as those on the Garda website and the Department of Social Protection (DSP).
• Read more about online safety, detailed by Coimisiún na Meán (this means the media commission) the regulator of online safety in Ireland.
• Get advice and information on scam calls and scam texts from the Commission for Communications Regulation (ComReg).
• The Banking and Payment’s Federation Ireland’s (BPFI) FraudSMART initiative has some useful resources on protecting yourself from fraud.
• The Competition and Consumer Protection Commission (CCPC) has information about how to watch out for scams and particularly financial scams.
• The Central Bank of Ireland has useful advice on avoiding scams and unauthorised activity.

How do I report a scam?

The Garda Cyber Crime Bureau (GCCB) is the national Garda unit that conducts investigations into criminal offences, including fraud-related online crime. Your report will be passed to law enforcement agencies for assessment and intelligence purposes.

Although not all reports will be investigated by law enforcement agencies, all reports are important as they provide information on the latest cyber-crime activity and trends. You may be contacted by police if additional information is required.

Click here to make a report

If you have any queries, concerns or questions, don't hesitate to submit a new Support request or get in touch with our Support Team on support@coinjar.com.