The Financial Markets Authority, Te Mana Tātai Hokohoko (FMA), is raising fresh concerns about a surge in sophisticated investment scams targeting New Zealanders, as fraudsters increasingly rely on artificial intelligence and deepfake technology to appear credible.
According to the regulator, scammers are now creating highly convincing fake news articles and promotional content featuring well-known politicians and business leaders. These materials are designed to lure unsuspecting consumers into signing up to fraudulent trading platforms, often resulting in significant financial losses.
Samantha McGuire, Manager Regulatory Services at the Financial Markets Authority, says the scale and sophistication of these scams have grown rapidly in recent months.
“We recommend exercising extreme caution when engaging with online content promoting investment opportunities, particularly when it uses images of high-profile New Zealanders. This isn’t a new scam; we first warned about these tactics in August 2024, but we’ve recently seen a significant increase in ads, fake news articles and fake investment platform websites linked to the scam,” she says.
“The current wave features clickbait headlines claiming to have information that authorities don’t want revealed. Individuals impersonated using deepfakes include Rt Hon Winston Peters, Kiwibank CEO, Steve Jurkovich and Westpac CEO, Catherine McGrath. But the scammers continuously switch the identities they’re impersonating, so stories may still be fake if they feature a different individual.”
The scale of activity is particularly alarming. In just a single 24-hour period, the FMA identified 110 scam-related advertisements circulating on platforms owned by Meta Platforms. Since the beginning of March, more than 190 fake trading websites linked to these scams have been detected and reported for removal.
This sharp increase highlights how quickly these schemes can spread online, often outpacing efforts to take them down.
How the scam works
These scams typically begin with highly persuasive fake articles distributed through social media platforms and news aggregation sites. The content often includes images or deepfake videos of trusted public figures, such as politicians, CEOs, or financial experts, paired with sensational claims designed to spark curiosity or urgency.
To enhance their legitimacy, scammers mimic the branding of well-known New Zealand media outlets such as Radio New Zealand (RNZ), TVNZ and The New Zealand Herald. However, while the logos appear authentic, the articles themselves are entirely fabricated and include false endorsements of investment platforms.
Once a user clicks through, they are directed to a professional-looking website that prompts them to enter personal details such as their name, phone number and email address.
From there, the scam escalates quickly. Victims are contacted directly by individuals posing as investment brokers or financial advisors. These scammers guide victims toward fraudulent trading platforms and encourage them to make an initial deposit, typically around US$250.
To build trust and encourage further investment, victims are shown manipulated dashboards displaying fake profits and returns. As confidence grows, they are pressured to invest larger sums.
However, when victims attempt to withdraw their funds, the situation changes. They are often told that additional fees or taxes must be paid before withdrawals can be processed, but even after paying, no money is ever returned.
“Do not click on these ads or links, and do not enter your personal information into these websites. If you have been contacted by a scammer after entering your personal information into one of these websites, block the contact, do not transfer any money to the scammers,” says Ms McGuire.
What to do if you think you have been scammed
If you believe you may have fallen victim to one of these scams, acting quickly can make a significant difference in limiting potential losses.
Contact your bank or payment provider immediately. Ask whether a transaction reversal is possible and alert them to any suspicious activity.
Check your devices for security risks.
If you installed remote access software at the request of scammers, seek help from an IT professional to ensure your device is free from malware. If you accessed financial accounts while the software was active, notify your bank or relevant providers immediately.
Block and report scam communications.
If you are receiving calls, block the numbers and report them to your telecommunications provider, following guidance from the New Zealand Telecommunications Forum.
Report spam messages.
Forward suspicious emails or texts to the Department of Internal Affairs to help authorities track and disrupt scam activity.
Talk to someone you trust.
Sharing your experience with a friend or family member can help you assess the situation more clearly and decide on the next steps.
Contact Victim Support on 0800 842 846.
They can provide free emotional and practical support and information.
