New Zealand's FMA Warns Against "YouTube Crypto Investment Scam"

The Financial Markets Authority (FMA), New Zealand's financial regulator, warns individuals against investment scams that use YouTube channels to promote fraudulent cryptocurrency investment firms/websites.

The authority explained on its official website how the YouTube cryptocurrency scam works, providing a step-by-step guide to help people recognize and avoid it. Read HOW THE SCAM WORKS and BE SAFE.

1. The scammers post videos on YouTube or other social media platforms offering crypto “tips” and trading advice.

2.These YouTube channels invite viewers to join private WhatsApp or Telegram groups for discussions on crypto investments. Prize offers and gifts are used to encourage viewers to join up.

3.Scammers may also encourage viewers to comment on their videos. This can give the scammers access to viewers‘ contact details, which then lets the scammers approach viewers directly via WhatsApp or Telegram. Once the user has accepted a WhatsApp or Telegram invite, scammers present themselves as an investment ’expert‘, ’mentor‘ or ’coach, and start offering investment advice.

4.The scammer will make unrealistic promises about these crypto investments, for example “earn above $2000 - $7000 daily on crypto” or “avoid risks and generate profit... within three days”.

5.The scammer will introduce the user to a fake investment platform. These fake platforms may imitate well-known cryptocurrency exchanges. The scammer will then coach the user through investing. Often, they will first encourage their victim to invest a small amount of money. They are then told theyve earned big profits and encouraged to invest even more money.

6.When the victim asks to withdraw their funds, they are told they must first pay a fee to release the money; even if these fees are paid, no money is paid out.

The FMA reminded individuals that if they come across these videos or investment platforms, or if they get assigned to strange group chats, they should not communicate with them or provide any personal information. Stop all interaction with the fraudster and do not send any money. Report the videos to YouTube, and any advice groups to WhatsApp or Telegram, and block the scammer across all of your devices.

About FMA

The Financial Markets Authority (FMA) regulates New Zealands financial markets. It was established in 2011 as an Independent Crown Entity.

Their statutory duty is to promote and facilitate the development of fair, efficient, and transparent financial markets; and to promote the confident and informed participation of businesses, investors, and consumers in the financial markets.

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