Money and Investment scams

This is an investment opportunity that arrives through social media, a messaging app or someone you met online. It will look legitimate, with professional branding and responsive account managers.

The investment may show returns early on, but when you try to withdraw, your access is blocked, you may be asked to pay extra fees or contact suddenly stops completely.  

Many of these scams operate through unauthorised apps which require custom installation known as ‘sideloading’.  

Be cautious if anyone asks you to install apps not supported by your phone or device’s official app-store.

Additional steps for this type of fraud

• Stop all payments and transfers immediately. Do not send any further money, including any withdrawal fee or tax they say is required. These requests are commonly used to obtain additional funds from victims.
• Save as much information as you can, screenshot everything you can access on the platform before you do anything else: account balance, transaction history, deposit confirmations, withdrawal requests and all communications. Platforms used for this type of fraud can disappear or become inaccessible without warning.
• Keep a record of all details associated with the investment, - platform name and URL, any app downloaded, email addresses, phone numbers, and names or usernames.
• Check whether the platform or person is registered with the Financial Markets Authority (FMA). Many investment platforms operating in New Zealand are required to be registered or licensed under the Financial Markets Conduct Act.
• If cryptocurrency was involved note the wallet addresses and transaction IDs from your exchange records. Keep this information with your records. It may be relevant if you make a report.
• If you sent money from a bank account, contact your bank as soon as possible. They may be able to discuss options for tracing or attempting to recover funds.
• Avoid engaging with anyone who claims they can recover your money for a fee. Some victims are targeted a second time by recovery scams that promise to return lost funds in exchange for additional payments.

What to realistically expect

Discovering that an investment opportunity was a scam can be distressing and overwhelming, particularly when significant amounts of money are involved.

Recovery of funds is often difficult, especially where cryptocurrency transactions or overseas transfers have been used. It is important to contact your bank or financial institution as soon as possible.

Even if the money cannot be recovered, reporting what happened, preserving records, and seeking support can help protect you from further harm and help identify those responsible.

Lottery, prize, and advance fee scams are when you are told that you have won a prize, inherited money, been selected for an exclusive opportunity, or are entitled to receive a payment.

Before you can receive the money or prize, you are asked to pay a fee, tax, legal cost, administration charge, or processing fee. Further payments are often asked for, but the promised prize or payment never arrives.

These scams can appear convincing and may use official-looking documents, websites, emails, or phone calls to build trust.

Additional steps for this situation

• Stop all payments. Do not send any further money, regardless of what you are told about why the next payment is necessary.
• Document all communications and every payment made: dates, amounts, account numbers or names, and what each payment was said to be for.
• Write down what happened. Record dates, amounts paid, account details, and the reasons given for each payment.
• Contact your bank as soon as possible if money has been sent. They can discuss what options may be available.
• Report the incident to police and keep any information that may help explain what happened.

What to realistically expect

Recovering money lost through prize or advance fee scams can be difficult. People operating these scams often continue to ask for more payments with new reasons why the money cannot yet be released.

Even if money cannot be recovered, reporting the scam and keeping information can help prevent further harm and help identify those responsible.

This is when you have paid for goods or a service online and it has never arrived, is different from what was described, or the seller cannot be contacted after they've been paid.

These scams happen on online marketplaces, social media platforms, classified advertising websites, or independent online stores.

Additional steps for this situation

• If you paid by credit or debit card contact your bank or card provider about a chargeback.
• Document everything - save screenshots of the listing, your payment confirmation, and all communications with the seller.
• Report the seller or the listing to the platform where the item was advertised. Most marketplaces and classified sites have a fraud reporting process. Use it, even if you are not certain it will help.
• Check whether the platform offers buyer protection or dispute services.
• If a chargeback is not available, for example if you paid by bank transfer - file a report with NZ Police (105).
• If payment was made by bank transfer or another method, report the matter to police and your bank.

What to realistically expect

Card payments offer the best chance of recovery through the chargeback process. Contact your bank quickly. Bank transfers are harder to reverse, particularly if the funds have moved quickly.

Reporting to the platform and to authorities may prevent the same seller from targeting others, even when direct financial recovery is not possible.
Many people feel disappointed, embarrassed, or frustrated after discovering that a purchase was fraudulent. These feelings are common.

Even where recovery is not possible, reporting the seller can help prevent them from causing further harm.

This is when you have applied for or were offered a job that is not real. You may have been asked to pay fees, buy equipment or uniforms, and told you will be reimbursed from your first pay.

Some fake jobs involve receiving money into your own bank account and passing it on. Being recruited to move money in this way puts your own bank account and legal standing at risk.

Additional steps for this situation

• Stop all activity immediately.
• If you paid money upfront for a job that has now disappeared contact your bank about recovering the payment.
• If you transferred or received money as part of the role contact NZ Police (105). Being used to move money, even unknowingly, can have consequences for your own bank account and legal standing. It is better to report this yourself, early.
• Report the job listing to the platform or job site where it appeared.
• Screenshot and keep all communications and any documents the employer sent you.
• If you shared personal information as part of an application such as your IRD number, bank details, or identity documents treat this as a potential identity risk. Identity theft
• If your bank account was used to pass on funds, speak to your bank as soon as possible. They can advise on what this means for your account.

What to realistically expect

Money paid to a fraudulent employer can be difficult to recover.

If you were used to move money, your bank may restrict your account while it investigates. This is standard practice and is not a punishment for being deceived.

Employment scams can be highly convincing. Many victims believe they are applying for or accepting genuine employment opportunities.

If you have lost money through a scam, you may be feeling shocked, embarrassed, angry, overwhelmed, or worried about what happens next.

These reactions are normal.

Whether the loss is small or significant, support is available. Taking action as soon as possible, keeping records, and seeking help can reduce further harm and help you understand your options moving forward.

You do not have to deal with this alone.