Financial fraud has skyrocketed since the pandemic began

Financial Markets Bureau (FMA) Warned New Zealanders about three types of scams that have become more common since the inception of the COVID-19 pandemic.

The FMA recorded 158 complaints about investment fraud and fraud in the first half of 2020. This is a 79% year-on-year increase. From January to June, regulators issued 36 public warnings about alleged fraud and other non-compliant entities. This is a 29% increase from the same period last year.

The three types of scams that FMA is particularly concerned about are:

  • Social media contact scam. Scammers use social media platforms to identify and / or contact potential victims. Actions include sending targeted friends and messages, asking and suggesting comments, and conducting fake investigations.
  • A romance investment hybrid scam that targets victims with a popular dating app.Scammers win victims’ trust with sophisticated back stories and co-conspirators before persuading them to send money abroad to buy the expected investment
  • A fraudster’s website that uses legitimate business names, logos, addresses, certificates and other details to fool investors. Recent examples are the spoofing of the kiwifruit company Zespri and the derivative issuer Rockfort Market.

According to FMA’s legal counsel, Liam Mason, the signs of fraud contain little or no written information, demanding payments on unusual platforms and continuously demanding money. And it is said that it is applying pressure.

“Scammers are constantly trying to evolve their approach. This dangerous scam trio can be sophisticated. The danger signal is not always obvious,” Mason said. “Scammers want to believe and are willing to play long games to gain your trust over the months. New Zealanders are strongly encouraged to deal only with locally registered entities. I recommend. If you find an investment opportunity, take a step back and ask yourself if this is true. Don’t hurry, be skeptical and ask a lot of questions. “

Financial fraud has skyrocketed since the pandemic began

Source link Financial fraud has skyrocketed since the pandemic began

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