Online investment scams are becoming increasingly sophisticated, and New Zealanders are being targeted more than ever. According to recent warnings from the Financial Markets Authority (FMA), scammers are now impersonating respected local financial commentators and business leaders — including Brooke Roberts, Carmel Fisher, Frances Cook and Gareth Morgan — particularly on Facebook and Instagram.
These scams are highly convincing, often using AI‑generated deepfake videos and professionally designed ads to give the appearance of legitimacy. Their goal? To lure people into fraudulent investment schemes.
How these scams work
1. Fake profiles and deepfake ads
Scammers create convincing social media profiles mimicking well‑known industry figures.
They often use deepfake technology to produce videos that appear to show these figures endorsing a particular investment group, platform, or trading opportunity.
2. WhatsApp “Investment Groups”
Once someone clicks on the ad, they’re invited to join a WhatsApp or Telegram group.
These groups are filled with fabricated success stories designed to build urgency and social proof. Many victims believe they are part of a legitimate trading community.
3. The “Coach” or “Mentor”
Within the chat, a so‑called investment coach or mentor provides advice, tips, and encouragement. Their primary goal is to guide victims toward specific shares or trading platforms controlled by the scammers.
4. Pump‑and‑Dump schemes
A common tactic is to persuade group members to buy low‑value listed shares.
Here’s how it unfolds:
- Victims buy shares believing the price will rise.
- Scammers simultaneously coordinate purchases to artificially “pump” the price.
- Once it spikes, the scammers “dump” their shares at a profit.
- The share price collapses, leaving victims with steep losses.
5. Risk of follow‑up scams
Unfortunately, the ordeal often doesn’t end there.
Victims are sometimes contacted by new scammers posing as recovery agents, offering to help retrieve the lost funds — for a fee. These are known as recovery scams.
What you can do to stay safe online
Treat online investment ads with caution – If you see an ad featuring a famous investor or financial expert promising high returns, assume it might be fake — especially if it redirects you to a chat group.
Always verify the source – If something sounds compelling, pause and verify through trusted channels. You can always contact us directly before acting on any investment opportunity.
Beware of pressure tactics – Scammers often create a sense of urgency. Legitimate financial advisers don’t use pressure or artificial deadlines.
Never make investment decisions inside messaging apps – Reputable professionals do not provide personalised investment recommendations via WhatsApp and Facebook Messenger etc
Check the FMA’s scam warnings- The FMA regularly updates its list of known scams and suspicious platforms. If something feels “off,” search for it here before getting involved: https://www.fma.govt.nz/scams/
Protect your personal information – Never share sensitive information (ID, bank statements etc) without confirming legitimacy
If you’re ever unsure, talk to us
At Ethical Investing NZ, we encourage our clients to reach out before engaging with any investment offer — especially one found online or through social media.
We’re here to help ensure your financial decisions are safe, sound, and aligned with your long‑term goals.