Watch out for fake investment ads
A public warning has been issued regarding sophisticated online investment scams featuring deepfake videos of New Zealand political figures.
The Financial Markets Authority (FMA) has received numerous complaints from New Zealanders who were tricked into clicking on fake advertisements with supposed “celebrity endorsements.”
Some recent examples include images of Prime Minister Christopher Luxon with false claims like “pensions payments will be cancelled,” designed to alarm readers into clicking on links.
“It can be very difficult to detect that some of these news stories are fake, they have the exact look and feel of legitimate online news content,” said Peter Taylor (pictured above), FMA director of scam prevention and coordination.
“But they are actually paid advertisements, used to alarm people, gain attention, and get them to click on a link for more information.”
Sophisticated scams and deepfake videos
Scammers use fake news stories and deepfake videos to create a mirage of legitimacy.
Victims often believe they have made money trading through these platforms but find they cannot withdraw funds without paying additional fees and taxes.
“These latest scams are pretending to be about the New Zealand superannuation regime, scaring people into thinking they may be losing retirement income,” Taylor said. “The use of political leaders’ faces and deepfake video to boost these claims is a particularly worrying development.”
Real-life impact
A New Zealand woman described her experience: “A Facebook ad caught my eye... It had an item about Jacinda Ardern and her husband Clarke Gayford. I clicked on it to read it.”
She ended up on a crypto trading site, depositing $420, thinking it was legitimate.
Protect your clients
Scammers lure victims through advertisements on social media and news websites, using fake images and quotes from politicians.
Make sure your clients do not click on these ads or enter personal information on these sites.
If they suspect they’ve been scammed, ask them to contact their bank immediately and seek professional IT help if they’ve downloaded remote access software.
For support, contact Victim Support on 0800 842 846.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
