Common types of scams

• Investment scams: You get a call, text or email or see an online ad proposing an investment opportunity with low risk and high returns. You make an investment but can never get your money back and the scammer can no longer be contacted.
• Phishing and Spear Phishing: These scams involve fake emails or texts that appear to be from trusted companies such as banks, government agencies or finance related organisations (i.e. insurance providers), asking for sensitive information like passwords, bank account details, or personal identification. Often, these scams direct recipients to websites that closely mimic legitimate ones.
• Impersonation Scams: This involves scammers use manipulative tactics to gain access to personal or business information. They may impersonate family members, employees, providers or suppliers to trick individuals into revealing sensitive data.
• Online shopping scams: You buy something online and pay for it, but the seller never sends it to you and breaks contact with you.

New scams are always emerging as scammers become better at impersonating individuals or businesses.

How to spot a scam

Although scammers can be very clever with how they present themselves, with many having fake websites to back up their claims, there are often red flags:

1. Unexpected contact

Someone you don’t know contacts you or you get a message from someone you know, but the message seems unusual.

2. Sense of urgency

Scammers want you to act quickly, without thinking. They will often ask you to click on a link or send account information immediately. They will convey a sense of urgency and can be very insistent that you act immediately.

3. Generic greetings and sign offs

Scams might not be addressed specifically to you. Instead, they might start or end with a generic greeting such as “Dear Sir or Madam” or “The Team”.

4. Random offers

Some scams will involve a ‘too good to be true’ scheme, like a low-risk investment opportunity with high returns. If it seems too good to be true, it usually is.

5. Suspicious attachments and links

Don’t open attachments or invoices from people or companies you don’t know, or you haven’t requested a service from. Hover over any links to see the website address (URL). If the address doesn’t match the place, it’s saying it’ll take you, is misspelt or included unusually digits, it’s likely a scam.

6. Requests for personal information

Scammers often ask for your personal information, such as login details or financial information. Never provide this information in response.

If you receive a suspicions email, phone call, or text message always procced with caution and don’t be afraid to ask a trusted individual for a second opinion.

Avoid being scammed

If you get a message that looks like a scam, make sure you know what the companies you deal with, will or won’t ask you to do. 

For example, many providers won’t:

• email or text you with links to online banking or account portals and ask you to log in
• send you a text message with a link to a website
• send you a text message asking you to contact them
• ask you for information about your PIN number, bank account number, or password
• ask you to transfer money to help catch a scammer or a bank employee who is scamming customers
• ask you to download software to access your Internet Banking remotely
• use international phone numbers to call or send you notifications

Before investing money:

• do your own research on different investments first
• contact the investment firms using the contact details on their official New Zealand-based website, not through emails, links, or phone numbers found online or sent to you directly
• make sure the investment firm is licensed by the Financial Markets Authority (FMA)
• check the FMA warnings and alerts page to make sure the firm isn’t listed as a suspected scammer.

What to do if you think you've been scammed?

1. Treat every text message that has a link or attachment as suspicious. Forward any suspicious messages to the DIA at 7726 (this won’t cost you anything). 
2. Don’t click on any attachments or links in text messages. 
3. Check if the email, phone call or text message is legitimate by contacting the organisation directly.  Ask for the caller’s name and department, then call them back via the main line found on the company website.
4. Check the sender email address and/ or website URL (website address i.e. www.bfa.co.nz) carefully to ensure it matches the company name, isn’t misspelt, or containing any unusual characters or digits.
5. Never share your personal details such as passwords or PIN numbers.

At BFA we are here if you need us - if you’d like to discuss a potential investment opportunity, or if you feel like a financial request or opportunity you have received is suspicious, and would like a second opinion please get in touch.



Thanks to our friends at BNZ & ASB for assisting with the information in the article.