“If you don’t understand it, walk away.” That’s a message being given to Kiwis, with nearly $200 million lost to scams in 12 months, according to 11 of New Zealand’s largest financial institutions.

The Ministry of Business, Innovation & Employment launched a Fraud Awarebness Week in November 2023 with efforts focused on encouraging consumers not to fall victim to investment scams.

Plus, a joint social media campaign featuring the psychologist Nigel Latta has been created by MBIE and the Banking Ombudsman Scheme.

This builds on the programme ‘You’ve been Scammed by Nigel Latta’, which broadcast on TVNZ earlier this year and is available on TVNZ on Demand.

The Financial Markets Authority has also created a social media campaign, in partnership with comedian Tom Sainsbury, illustrating what investment scams can look like.

Real investment offers don’t come out of the blue, according MBIE’s Fraud Awareness spokesperson Ian Caplin.

Those with savings

He says scammers are targeting everyone across New Zealand – but especially those with savings or investments who are looking to earn a little bit more from their money.

“It’s important to remember real investments don’t just come out of the blue. If it seems too good to be true, then it probably is,” says Ian.

“If you receive unsolicited investment offers via email or through a ‘cold call’, ignore it. It’s illegal to sell financial products through these methods in New Zealand.

“Investors can contact institutions directly through contact details on official websites to verify documents and payment instructions before sending any money. The FMA website also contains details of warnings and real-life examples of scams.”

Stop all contact

Iam advises that if you think you’ve been scammed – stop all contact with the scammer.

“Do not make any more payments and contact your bank immediately. Report all investment scams to the FMA, and scams in general to CERT NZ to stop others falling victim.

“If you don’t understand it, walk away. Before you make any investment, understand how the investment works.”