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New Zealand Police Appeals People To Beware Of Online Scams

New Zealand Police Appeals People To Beware Of Online Scams

New Zealand police have cautioned the public about web scams after an investor gave away capital of $320,000 NZD to crypto fraudsters. The unnamed investor, who did several investments in a fraudulent web cryptocurrency scheme, was fascinated by its “extremely good returns”.

As per a police report, those returns in the investments soon began to drop. When investments halted, this led the scammer to connect with the investor personally, prompting the investor to invest more through the website. Senior Sergeant Paul Reeves stated that people should take expert advice before making any new investments. Scammers are awfully persistent and can look extremely credible, as they are exceedingly competent in their trade.

Regulators worldwide remain to deal with concerted efforts by malicious entities to manipulate entry-level investors in the cryptocurrency market. Cointelegraph recently highlighted a spate of identity thefts in the United Kingdom by fraudulent firms stating themselves as approved cryptocurrency-related entities.

In the month of August, the Financial Conduct Authority reported that crypto investment tricks are gradually targeting British investors. The regulator warned that scammers often use celebrity pictures, slick websites or famous City of London addresses as a coverup through which to attract prospective investors.

Scam companies can manipulate software to misrepresent prices and investment returns. The FCA added that they may cheat people into purchasing non-existent cryptocurrencies. Scammers are known to abruptly close customers’ online accounts and withheld funds with them. In some cases, they even ask for more funds before the initial capital can be transferred.

The FCA stated that cryptocurrencies are not currently managed by the agency, indicating that several crypto exchanges fall beyond its remit. They regulate crypto derivatives including contracts for difference, options and futures.

In these instances, the FCA cautions investors to check whether the company in question has obtained the needed authorization to advertise or sell these products. More recently, the agency has warned against the so-called crypto “clone companies” falsely stating to have FCA approval. The FCA also directs that anyone who has by now invested in а con is a possible target for another attack.

Published by Nicholas Maithya

Nicholas is a Financial Analyst by profession, who enjoys writing about investments, technological developments, business, economics and other financial topics at various financial publications. Join him here on as he endeavors to deliver to you the latest breaking news on the above mentioned fronts. Contact him by email at [email protected] or follow Nicholas Kitonyi @nmaithyak on Twitter.

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