New Zealand’s top financial regulator, the Financial Markets Authority (FMA) has issued a warning about a new crypto investment scam targeting the country’s citizens.
According to the regulator, the scam is promoted through YouTube channels that offer fake crypto investment advice, urging viewers to join private groups on platforms like WhatsApp or Telegram. In these groups, scammers promise high returns and offer prizes to participants.
FMA explained that victims are drawn in by videos that claim to offer crypto investment “tips” and the opportunity to earn substantial daily profits, with promises of “$2000 – $7000” or quick, risk-free returns. After being lured into private messaging groups, scammers pose as investment experts and present fake platforms that resemble popular crypto exchanges. Initially, victims are encouraged to invest small amounts, only to be told they’ve earned large profits. However, when they try to withdraw their funds, they are asked to pay additional fees, but no money is ever returned.
The FMA urged the public to verify trading platforms through the Financial Service Provider Register (FSPR) to ensure they are legitimate and authorized to offer financial services in New Zealand. The authority also advised against engaging with scammers, sharing personal information, or interacting with suspicious videos. It also asked the public to report suspicious emails or messages to the Department of Internal Affairs.
Victims are encouraged to report the scam to YouTube or the relevant platform and to contact their bank or payment provider for assistance immediately.
Crypto scams are a growing global issue. In Australia, for example, over AUD $180 million ($122 million) was lost to investment fraud in the past year, and nearly half of the reported losses involved cryptocurrencies. Notably, 60% of the victims were under the age of 50. The Australian Federal Police (AFP) warned that young people are prime targets for increasingly sophisticated scams, including tactics like “pig butchering” and deepfakes. The law enforcement officials asked residents to be careful with investment opportunities that seem too good to be true.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
