The Financial Markets Authority issued more investment scam warnings in 2025 than in any previous year. Investment fraud — particularly fake cryptocurrency trading platforms and clone broker firms — has become one of the most significant financial crime categories, with individual losses often exceeding $20,000-$200,000.
Here is what you need to know to protect yourself.
The mechanics of a modern investment scam
Most investment scams follow a pattern:
- 1.*Initial contact* via social media, a dating app, WhatsApp, or sometimes a direct approach from someone claiming to know you through a mutual connection (often also a scam account)
- 1.*Relationship and credibility building* — the "adviser" or "friend" demonstrates expertise, shares screenshots of their own impressive trading returns, and offers to teach you or help you invest
- 1.*Small initial investment* that generates impressive returns visible in your "account dashboard" — these returns are entirely fabricated on a fake platform
- 1.*Encouragement to invest more* — once you see gains, you naturally want to invest more; sometimes friends or family are encouraged to join
- 1.*Withdrawal barriers* — when you try to take your money out, new fees, taxes, or "verification requirements" emerge, requiring additional deposits before any withdrawal is possible
- 1.*Disappearance* — eventually the platform becomes inaccessible and all contact ceases
Warning signs of a fake investment platform
*The offer:* - Guaranteed returns or "risk-free" profits (no legitimate investment guarantees returns) - Returns that significantly exceed market rates (10%+ monthly returns are impossible legitimately) - Very limited time or exclusive opportunity pressure - Unsolicited contact from someone offering to manage or advise your investments - Cryptocurrency-only investment platforms you've never heard of
*The platform:* - Professional-looking website that appeared recently (check domain age) - No physical address or only a PO box - Unable to verify the platform on FMA or FSPR registers - Customer support that only responds via WhatsApp or Telegram - No clearly documented withdrawal process
*The adviser:* - Met only online and can never meet in person - Has an unusually glamorous or successful-looking social media profile - Deflects questions about their regulatory status or qualifications - Puts pressure on you not to consult family or a financial adviser
How to verify any investment
Before investing any money with any firm or adviser:
- 1.Check the FMA's Financial Service Providers Register at fspr.govt.nz — any legitimate financial adviser or firm must be registered here
- 1.Check the FMA's warning list at fma.govt.nz/consumers/scams/ — the FMA regularly publishes warnings about known scam operations
- 1.Search "[company name] scam" or "[company name] FMA warning" — this often surfaces existing reports
- 1.Ask for a Product Disclosure Statement (PDS) — all regulated investment products must have one
- 1.If the opportunity came through a social connection, independently verify that connection is real — fake account profiles are used to create false referrals
What to do if you've been scammed
Act immediately: - Do not make any further payments, regardless of what you're told about releasing funds - Report to the FMA (0800 434 566) immediately - Report to NZ Police (105) - Contact your bank to attempt to recall any transfers - Report to Netsafe (0508 638 723)
Recovery is difficult — often less than 10% of investment scam losses are recovered — but early action gives the best chance.