Tech Tip: Protect Against Investment Scams

Investment scams are becoming increasingly sophisticated. Scammers often lure victims with the promise of high returns, low risk, and time‑pressured “exclusive opportunities.”

The good news? With a few practical habits, you can dramatically reduce your risk of being deceived. Here is a simple, step‑by‑step guide to help you protect your money and your peace of mind.

1. Slow Down and Assess the Offer

Scammers rely on urgency and use your fear of missing out to trick you into making a decision before you have had the chance to properly think about it. If an opportunity demands quick action, that is a major red flag. Common pressure tactics include:

“Guaranteed returns”, “Last chance. Spots are almost full!”, and “This is a once‑in‑a-lifetime opportunity”. Legitimate investments give you time to think, research, and ask questions.

Ask yourself:

• Does this seem too good to be true?
• Do I feel pressured?
• Why do I need to decide right now?

2. Verify the Person or Company

Always check whether the individual or firm is licensed to provide financial advice or investment services in New Zealand.

How to verify:

• Run the company website address through checknetsafe.nz.
• Check whether the company is registered in New Zealand to provide financial services by searching the Financial Services Providers Register.
• Check contact details provided match the company's official website.
• If the business is outside of New Zealand, find out who regulates them. Overseas services, including those online, are not subject to the same requirements as those in New Zealand and there may be limited things that can be done if anything goes wrong.

Did you know that in New Zealand, it is illegal to offer unsolicited investments. If you receive an unexpected call about an investment opportunity by an individual or organisation you don’t have a preexisting relationship with, it is almost certainly a scam. 

3. Research the Investment Thoroughly

Spend time researching beyond what the promoter tells you.

Do this:

• Look up reviews and complaints.
• Google the company + “scam,” “fraud,” or “complaints.”
• Take a look at the Financial Markets Authority's scam warning page to see if the entity has already been flagged.
• Use reputable sites when looking for information about financial products such as:  sorted.org.nz and moneyhub.co.nz. 
• The International Organisation of Securities Commissions (IOSCO receives alerts and warnings from its regulators across the world about firms which are not authorised to provide investment services in the jurisdiction which issued the alert or warning. They can be a good source to check overseas investment opportunities against.

4. Never Send Money or Crypto to Unknown Contacts

Scammers frequently use crypto or wire transfers because they are hard to reverse. Call the investment provider on their publicly listed telephone number and confirm the payment instructions before transferring funds. 

Rule of thumb:

If you don’t personally know the business and cannot verify its legitimacy, do not send money.

5. Protect Your Personal Information

Your data can be used to target or impersonate you.

Steps:

• Don’t share ID documents or bank details until you have confirmed legitimacy.
• Avoid clicking links from unsolicited messages.
• Enable multi-factor authentication on all financial accounts.

6. Trust Your Instincts

If something feels off, even slightly. then pause. Your intuition is a powerful early-warning system.

7. Report Suspicious Activity

If you suspect you have been targeted by an investment or financial scam:

• Stop all contact with the scammer immediately.
• Don’t send any more money (even if you are being told more is required to release returns).
• Contact the bank or transfer service that you used to send the money. They will have a policy to deal with fraud. Ask your bank if it can recall the payments. 
• Report it to the National Cyber Security Centre (NCSC) and they can help you figure out what steps to take next.
• Also report investment scams to the FMA so they can warn others and take enforcement action against scammers. 
• Tell family and friends what has happened. Scammers rely on shame and secrecy to help them keep scamming others, so telling others can help stop the scam.

Reporting helps authorities track patterns and protect more people.

Final Thoughts

Protecting yourself from investment scams doesn’t require financial expertise, just awareness and caution. Take your time, verify everything, and never be afraid to walk away. Your future self will thank you.