Investment scams are getting harder to spot. Be suspicious of any unexpected offers, double-check the source, get a second opinion and if you don’t understand it, walk away.
Investing in a scam? Stop, think – is that return for real?
Investment scams have become trickier and harder to spot.
Without realising it, you may be tricked into giving away your hard earned money to scammers.
If you’re approached with an investment offer that comes out of the blue, an offer with guaranteed returns or pressure to act now – stop, think – is that return for real?
4 ways to avoid investment scams
1. Real investments don’t just come out of the blue
- Check whether the company is registered in New Zealand to provide financial services.
- Type the name of the company and 'scam warning' into your search engine.
- Take a look at the Financial Markets Authority's scam warning page.
- If your money is going offshore – be really careful – it's almost impossible to get it back.
2. Check the source to make sure it’s real
- Check whether the company is registered in New Zealand to provide financial services.
- Type the name of the company and scam warning into your search engine.
- Take a look at the Financial Markets Authority’s scam warning page.
- If your money is going offshore – be really careful – it’s almost impossible to get it back.
3. Get a second opinion before handing over money
- Get advice from a financial advisor who can help you spot any red flags.
- Run it by friends and family – what do they think?
4. If you don’t understand it, walk away
- Before you think about handing over any money, make sure you understand how it works.
- If you don't understand it, walk away.
Get scam alerts on Facebook with Scamwatch
Every day we are more and more exposed to scams at home, at work and at play. One way you can protect yourself is by staying up to date with the latest scams. Follow our Scamwatch page on Facebook for all the latest scam news and updates.
