FMA encourages New Zealanders to be aware of investment scams

Fraud Awareness Week 2023 runs from 13-18 November and this year’s focus is about encouraging consumers not to fall victim to investment scams.

Red flags to watch for and ways to avoid being scammed include:  

• Check the source to make sure it’s real. Make sure the company is based here, has a New Zealand phone number and the website url matches the company.   

• Get a second opinion before handing over money. Press pause and think hard before handing over any money. Check with a trusted adviser, friend, or family member – often all it takes is a fresh set of eyes to raise red flags you may not have considered. 

• Real investments don’t come out of the blue. Banks and fund managers are licensed and regulated and do not generally call you out of the blue, offering a new opportunity that demands you immediately send them money.  

• Check very carefully before sending any money or personal information to an investment opportunity, even if you think you’re investing with a legitimate or well-known financial institution. Do not trust links, emails or contact details supplied by callers. Check for yourself with the institution.  

• Pay attention, listen to your bank if it raises questions or concerns about your payment requests or money transfers – they may have seen other customers lose money responding to the same opportunity.  

• If you don’t understand it walk away. 

The FMA has an abundance of resources on its website on how you can protect yourself against investment scams, and a list of public warnings. You can also report a suspect scam here.