New Zealand Regulator Cautions Against Unsolicited Investment Offers on Social Media

On June 17, New Zealand's Financial Markets Authority (FMA) issued a warning about scams appearing on social media and message platforms.

The New Zealand regulator has recently seen a rise in reports of fraudulent investment schemes circulating on social media. Scammers have been using platforms such as WhatsApp, Telegram, Discord, Facebook/Messenger, Instagram, and Viber to spread deceptive messages.

According to the regulator, the senders claimed to work for investment firms or banks. They offered investment opportunities that appeared to be attractive .

The FMA has received reports from consumers who were unexpectedly added to investment-related chat groups and subsequently faced investment scams.

While the regulator did not cite specific financial products involved in these investment scams, reports from users of trading community and BrokersView indicate that these trading platforms often claim to offer legitimate investment services in foreign exchange, cryptocurrencies, stocks, and other financial products.

The FMA urged the public to exercise caution when receiving unsolicited investment messages on social media. Even if these messages come from friends, there is a risk that scammers have hijacked their accounts. The regulator also advised against responding to such messages and suggested reporting them to the platform operator.

BrokersView reminds you

Investors should be extremely wary of investment advice from unconventional sources to protect their funds and avoid scam.

If you are unsure whether a trading platform or investment opportunity is legitimate, you can ask Brokersview for a free assessment.