New Zealand’s Financial Markets Authority (FMA) disclosed on Wednesday that there has been a rise in investment scams. According to the Qiwi watchdog, one in every five locals was in some way targeted by a financial scammer. These all have the common variable of occurring during the COVID-19 pandemic. The most common technique for fraudsters is to impersonate regulated FX businesses in the country.
61 investment scams were discovered by the FMA in the period spanning from April 1st to November 5th. Out of these, 21 were imposter scams that fake social media accounts or had entirely fake websites as part of their schemes. The watchdog further warned users that many fraudulent groups were downright impersonating the FMA itself in order to transfer money more efficiently.
The license issuer urged users to become more vigilant by educating themselves on how these scams function. Moreover, the FMA asked them not to trust high return offers, as this is one of the most popular lures used by scammers. The regulators revealed that the best technique is for clients to be always skeptical, and always question higher retund opportunities.
The most popular scams are those that involve cryptocurrencies. Close at the second position come those that involve software and shares.
The pandemic has given rise to investment scams all over the world, mostly profiting from the fear that the virus has induced in people.
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