Fake investment and crypto advisers: the call that promises big returns

Fake investment and crypto advisers: the call that promises big returns

It often starts with an ad on social media: a well-known New Zealander or a famous businessperson apparently "revealing" the platform that made them rich. You fill in a form, and soon a friendly, confident "account manager" calls. They talk about cryptocurrency, AI trading or shares that can't lose. They ask for a small first deposit, show you your money growing on a slick dashboard, and then ask for more. When you try to take it out, it's gone. And months later, someone calls offering to recover it, for a fee. Both calls are scams.

How does the scam work?

1. The hook. An ad on social media, or a fake news article using a celebrity's face, or a cold call. They ask for your name, phone and email "so an adviser can contact you".
2. The small first investment. The adviser asks for a few hundred dollars "to open the account". It's not much and it sounds reasonable.
3. The fake profits. You get access to a platform with charts and a balance that grows every day. It's a website they control: the numbers don't match any real investment. Sometimes they even let you withdraw a small amount to win your trust.
4. The pressure to invest more. Frequent calls, a "senior account manager", opportunities that "close today". They push you to use your savings, take out a loan, or even dip into money you'd set aside, and to install a remote-access app (AnyDesk, TeamViewer or similar) "to help with the trades".
5. The lockout. When you try to withdraw, suddenly taxes, fees or "guarantee deposits" have to be paid first. Whatever you pay, the money never comes out.

What is the recovery scam?

Once you've lost money, your details are worth more. Weeks or months later, someone contacts you claiming to be a lawyer, an "international recovery agency", a regulator or even the police. They know details of your case and promise to get your money back, but first you must pay a fee, a "tax" or a deposit. It's the same people, or people who bought your details. No legitimate body asks you to pay upfront to recover money lost to a scam.

What are the red flags?

• High, guaranteed returns. In real investments, higher returns mean higher risk. "Risk-free" and "guaranteed" are scam words.
• Calls you didn't ask for, or calls that follow a form you filled in from a celebrity ad.
• Constant urgency: "the opportunity closes today", "if you don't get in now you'll miss the bonus".
• A request to install a remote-access app on your phone or computer.
• Payments in crypto, transfers to overseas accounts or to individuals, never to an identifiable New Zealand provider.
• You're asked to pay in order to withdraw your own money.
• Secrecy: "don't tell your bank, they don't understand crypto".
• The firm can't show it's properly licensed. In New Zealand, the Financial Markets Authority (FMA, Te Mana Tātai Hokohoko) regulates financial markets and publishes warnings about scams and unregistered businesses on its website. Be careful: a listing on the Financial Service Providers Register only means a business is registered, not that it is licensed or supervised, and scammers often point to registration to look legitimate.

What do I do if they're calling me right now?

1. Don't give any details and don't agree to "just find out more". Hang up politely, without explanations.
2. Don't install anything they ask you to, especially remote-access apps.
3. Don't send money or crypto, not even a "small test amount".
4. Check the firm yourself. Search the FMA's warnings and alerts by the exact name, and check whether the business holds the right licence. If you can't confirm it's licensed, stop there.
5. Block the number and report it in the spam numbers directory so others can recognise it.

What if I've already invested or paid?

1. Stop paying. No taxes, no withdrawal fees, no "final transfer". Every extra payment is money lost.
2. Uninstall any remote-access app and, from another trusted device, change your internet banking and email passwords. Turn on two-step verification.
3. Call your bank on its official number. Explain what happened, ask them to block cards or pending transfers and ask what options there are to dispute or recover payments.
4. Gather evidence: screenshots of the platform, emails, chats, phone numbers, payment receipts, crypto wallet addresses and transaction IDs.
5. Report it to Police on 105 or through the 105 online service on the NZ Police website, and to the National Cyber Security Centre (NCSC). You can also tell the FMA about the firm through its website, so it can warn others.
6. If you sent money through a legitimate crypto exchange, tell them too: sometimes they can flag the receiving addresses.

Consumer Protection's Scamwatch has more on investment scams and what to do next.

How do I avoid the second scam?

• Be wary of anyone who contacts you offering to recover your money, especially if they know details of your case.
• Police and the FMA don't charge victims. They'll never ask you for money, crypto or to install anything to give back what you lost.
• Don't pay upfront to anyone who guarantees recovery.
• Talk to someone you trust before making any decision about money after a scam.

Frequently asked questions

They showed me my profits growing. Weren't they real? No. The platform is a website the scammers control, and the numbers are whatever they want you to see. The only real money is what you sent.

They let me withdraw a small amount. Doesn't that prove it's legitimate? It's a classic tactic: a small withdrawal builds trust so you'll invest much more.

The firm is on the Financial Service Providers Register. Is it safe? Not necessarily. Registration isn't the same as being licensed or supervised. Check the FMA's warnings and whether the firm holds the licence for the service it's offering.

Is it worth reporting if I'm embarrassed? Yes. These scams are run by organised networks and catch careful, intelligent people. Your report helps Police and the FMA, and may help stop the next victim.

In short

Guaranteed returns, urgency, remote-access apps and fees to withdraw your own money: that's the investment scam. Hang up, don't install anything and check the FMA's warnings before you send a cent. If you've already paid, stop, call your bank and report it to Police and the NCSC, and ignore anyone offering to recover the money for a fee. And report the number in the NoCall spam numbers directory.