Free investment trading education scam

Have you seen an ad on social media advertising free investment trading education or tips? We’re seeing an increasing number of scams which start like that and then people are added to a WhatsApp group and coached or mentored whilst investing money. 

• The group promises unrealistic returns and provides coaching, mentoring, or tutoring.
• The investment may appear to be endorsed by a well-known public figure or celebrity.
• Rewards are often given for attending sessions or completing training courses (gift cards, free trades etc).
• Investments are recommended and assistance provided from someone in the WhatsApp group to guide you through setting up accounts, transfers and trading etc.
• Trading platforms are made to appear legitimate, and people are transferring money to these scammers.
• If you ask to withdraw money, you’re told fees must be paid first, but the money is never returned.

The Financial Markets Authority (FMA) have issued a warning. Read more about the scam on the FMA website.

• Be wary of email offers, social media posts or communications advertising investment opportunities, that ultimately ask you to pay a fee or set up Crypto accounts with your own money. Remember, if it sounds too good to be true, it probably is.
• Before investing money, research the company, the investment opportunity, and the people behind it. Look for information from independent sources, including regulatory agencies, financial analysts, and reputable news outlets. This includes following the FMA’s advice to check the Financial Service Provider Register (FSPR) to see if an entity is registered to provide financial products and services to New Zealanders.
• Take your time to thoroughly look into it. Before making any decisions, consult a licensed financial advisor or investment professional. 

Remember:

• If you think you’ve been the victim of a scam, please call us immediately on 0800 269 296 (or +64 4 470 3142 from overseas, charges may apply).