New Zealand investors are being urged to exercise caution as the Financial Markets Authority (FMA) reports a rise in social media scams that target individuals with fraudulent investment opportunities.
Scammers have been using social media, particularly Meta platforms, to impersonate business leaders and financial commentators, often creating deepfake videos that appear realistic. These fake profiles promote “free investment advice” WhatsApp groups and encourage victims to invest in online platforms that do not exist.
Investment scams blur the line between financial fraud and insurable loss. While some policies may respond, many do not, leaving significant protection gaps. Insurers are tightening wordings, regulators are increasing oversight, and brokers have an important role in ensuring clients understand the limitations of their cover.
Clare Bolingford, FMA executive director licensing and conduct supervision, said the rise in scams is alarming. “Impersonating business leaders and commentators is a new feature of this type of scam, and they include deepfake videos that look realistic. The promise of investment platforms and easy money, resulting in New Zealanders being scammed out of their savings, remain the same,” she said.
The FMA advises the public not to click on links, register, provide personal information, download apps, or send money in response to social media investment promotions. Suspicious activity should be reported to the platform and to the FMA.
This surge in scams follows other recent developments in New Zealand’s financial landscape. In June, ANZ New Zealand issued a warning about a scam impersonating its ANZ Premier Wealth division. Emails offered “treasury and corporate Kiwi bonds” and falsely claimed these investments were protected by the Depositor Compensation Scheme introduced on July 1, 2025.
The FMA has also highlighted that scammers are increasingly using messaging platforms like WhatsApp to recruit victims. These scams often involve group chats where so-called mentors provide fraudulent trading tips. Some schemes operate like pyramid models, offering small incentives for recruiting friends and family, and in extreme cases, scammers may persuade victims to download apps that allow remote access to their devices.
Bolingford said these scams are not unique to New Zealand, but the latest use of deepfake videos marks a concerning evolution. “The FMA is warning the public about this scam to help investors understand how it operates, make informed decisions and take steps to protect themselves,” she said.
As scams become more sophisticated and adapt to new financial regulations, authorities stress vigilance, cautious verification, and immediate reporting as key tools to prevent loss of savings.
What can investors do to avoid being scammed? Share your insights in the comments below.
