A man has been charged with money laundering following multiple reports of a false investment scam circulating New Zealand.

Police have received multiple reports of a false term deposit scam where the offender/s claim to be investment advisors, receiving significant amounts of money from victims.

"Scams of this nature are often internationally based and utilise New Zealanders as mules giving their scam a sense of legitimacy," says NZ Police Whanganui area investigations manager Detective Senior Sergeant Phil Taylor.

The investigation into this series of scams has resulted in a 52-year-old Whanganui man being arrested.

He was due to appear in Whanganui District Court on Tuesday, August 22, on five charges of money laundering.

"Enquiries into this scam continue," says Detective Senior Sergeant Phil Taylor.

"It is important to be vigilant when online and carry out measures to prevent yourself from potentially being scammed."

Phil says there are several steps people can take to protect themselves from similar scams.

"Scams continue to evolve and use more sophisticated methods to deceive the public – the age-old saying “if it sounds too good to be true, it probably is”, is a good rule of thumb.

"We encourage people to research ‘broker’ companies online before engaging with them."

Phil says scammers will pose as brokers for a number of established banks.

"Check out the Financial Markets Authority’s website as they publish the names of suspicious companies on their website.

"Always talk to your bank or another financial professional before making large online investments. If returns are higher than usually seen, it’s probably the sign of a red flag."

Phil says be sure to do your research and make sure the website is legitimate.