Fraudsters are using AI-generated images and videos to try to lure consumers into handing over sensitive data, according to FraudSMART.
It has warned of a surge in AI-based online adverts promoting bogus, State-backed investment schemes. They tend to feature fake images of high-profile politicians or businesspeople, which encourage users to click on a link to register for the scheme.
"Fraudsters are exploiting recent news coverage of a planned state-backed savings and investment scheme to make their adverts appear legitimate," said Niamh Davenport, head of financial crime at Banking and Payments Federation Ireland, which operates FraudSMART.
"They often claim the scheme is open to everyone, but that places are limited and being 'snapped up' fast, in order to pressure people to act quickly.
"They typically promise guaranteed returns or a guaranteed monthly income."
BPFI said that while all users are vulnerable, data shows that people in their early 50s are more likely to fall victim to investment scams. This is largely due to the fact that this age group is actively planning for their retirement.
"Most investment scams tend to follow a similar pattern - consumers are encouraged to click on a registration link and asked to fill in a short form with their contact details to receive more information," said Ms Davenport.
"They may then receive a call from a so-called 'financial advisor’ urging them to make an immediate ‘security deposit’ to secure their place on the scheme.
"Once the victim is convinced and has authorised the payment, the criminal will quickly transfer the money through multiple accounts, often overseas, where it is then cashed out."
It comes as recent data from An Garda Síochána showed a 20% rise in investment fraud last year, with more than €20m lost by victims.
BPFI said the scale of fraud can range from hundreds of euro lost through the likes of crypto-scams, to tens of thousands of euro lost through bogus investments.
It urged consumers to take steps to protect themselves - including being wary of any online advertisements, being careful about sharing of personal information, and resisting being rushed in to making any decisions.
