How can Kiwis protect themselves from fake investment scams?
ANZ warns Kiwis not to be taken in by a fake investment ad trying to pull the wool over their eyes on social media.
The bank urges the public to avoid the advertisement, which offers a stock advice programme.
ANZ NZ Head Customer Protection Alan Thomsen said the ad funnels people into “investment advice” group chats where scammers pressure them to invest.
“ANZ does not offer stock trading education programmes. A legitimate ANZ advert would be posted by ANZ Aotearoa and have a verified blue tick next to it,” he said.
According to ANZ customer data, investment scams are the second-most common scam for customers aged 66 to 74, accounting for around 20% of cases, and about 10% for those 75 and older.
“Scammers target everyone, they monitor our behaviour and look for different ways to trick people out of their money,” Thomsen said.
“If you are 18 to 25 you are most likely to fall victim to an online shopping scam. If you are between 30 and 45 you are far more likely to click on a phishing text message. And for older people you are far more likely to be targeted by an investment or romance scam.”
Awareness and protection
For ANZ Managing Director Fiona Mackenzie, awareness is critical for KiwiSaver members approaching the age of 65, when they can already unlock their accounts and withdraw their money.
“Investment fraud can be both financially and psychologically devastating. The scammers rob people of their savings and destroy their self-confidence and trust in other people,” Mackenzie said.
She added: “An unfortunate aspect of the investment scams is that the people involved don’t follow any of the strict rules that exist in New Zealand around offering financial advice."
Fraud Awareness Week
ANZ has introduced new tools to boost customer protection, including phishing-site blocking, Confirmation of Payee, Dynamic Security Code, and ANZ Payment Check with Visa Secure.
Reported scams and customer losses are declining, with nine out of ten cases causing no loss, but ANZ urges customers to stay vigilant.
In light of Fraud Awareness Week (November 16 to 22), ANZ highlighted common signs that an investment could be a scam:
- Unexpected social media posts, ads, direct messages, phone calls, emails, or texts asking for money or to invest
- Promises of high, fast, or low-risk returns
- Pressure to invest quickly or risk missing out
- Promoters not registered with regulatory agencies like the Companies Office or FMA, or who provide unclear information
- Messages claiming to recover funds you may have lost in a scam
ANZ also shared tips to help customers avoid falling victim to investment scams:
- Research the company, the investment, and the people behind it before sending money. Check independent sources, including regulatory agencies, financial analysts, and reputable news outlets
- Verify the legitimacy of the website before sharing personal or financial information
- Contact the investment provider using the number listed on their official website
- Take time to investigate the opportunity fully, and get advice from a licensed financial adviser before deciding
- Be cautious with social media ads for financial services. Even if they feature well-known business leaders or commentators, they may be impostors
