In the current year, the FMA has issued 82 alerts regarding suspected investment scams and impostor websites, along with 22 warnings about unregistered businesses. This figure shows a rise from the previous year, which saw 64 scam alerts and 14 warnings against unregistered entities.
As per a news release, the FMA reports that the financial impact of these scams, including both actual losses and narrowly avoided incidents, amounted to $3.35 million in 2023, according to details provided by those reporting to the FMA.
The FMA also noted an alarming trend of document falsification, with 77 complaints received in this category. A significant majority of these, 71 to be precise, involved scammers falsely claiming to hold an FMA licence. These complaints predominantly originated from various locations across Europe.
In response to this escalating issue, the FMA enhanced its “Report a Scam” feature on its website in October. This update led to a substantial increase in public reports of scams. Of the 331 scam reports lodged with the FMA in 2023, 184 were filed after this website enhancement. In contrast, 2022 witnessed a total of 211 scam reports.
Peter Taylor, FMA’s senior responsible officer for scam prevention and co-ordination, commented on the situation, stating that despite the holiday season being a period for relaxation for many New Zealanders, scammers remain active. He cautioned against various forms of scams, including investment frauds, phishing, impersonation, and dating scams.
“We also remind New Zealanders that there are plenty of well-regulated investment products available from legitimate financial providers, where their money is subject to the protections of the Financial Markets Conduct Act and the FMA’s supervision of these products and providers,” Taylor said.
What are your thoughts on this story? Please feel free to share your comments below.
