New Zealand’s FMA Cautions Against Increasing Crypto Scams Aimed at Users Through YouTube and Messaging Services

The Financial Markets Authority (FMA) of New Zealand has issued a caution regarding a growing trend of cryptocurrency scams aimed at social media users.

In a warning released on Monday, the regulatory body indicated that the scammers primarily operate through YouTube channels and messaging services such as WhatsApp and Telegram, enticing unsuspecting individuals with claims of profitable investment opportunities.

Fraudsters Create YouTube Channels to Appear Credible

Fraudsters establish YouTube channels that portray themselves as reliable sources for cryptocurrency trading guidance.

Viewers are urged to join private messaging groups on WhatsApp or Telegram, where the scammers impersonate seasoned investment professionals.

Once victims are part of these groups, they are directed to fake trading platforms that are designed to resemble authentic cryptocurrency exchanges.

The scam employs a calculated approach.

Initially, victims are prompted to make minor deposits, which helps build a sense of trust.

They are subsequently shown fabricated profit reports to entice them into making larger investments.

However, when users try to withdraw their funds, they encounter requests for additional fees, and no money is ever returned.

The FMA has identified over 40 dubious trading platforms, including bi-investments.com, phoenix-trades.com, and bricsinvestlimited.com.

A comprehensive list of the identified platforms can be found on the FMA’s official website.

226,000 individuals are currently being scammed on YouTube by an AI impersonating Elon Musk – soliciting their cryptocurrency.
The account resembles a legitimate @Tesla account, but it is clearly not, as the username is “tesla.elon-US”
They are utilizing an AI-generated Elon discussing the robotaxi and… pic.twitter.com/fAiFVpt1tX

— Zoli (@zolihonig) October 11, 2024

The FMA recommends that anyone who suspects they have been victimized by a scam should stop all communication with the fraudsters, report the incident to the relevant platforms, and seek assistance from their bank to attempt a transaction reversal.

Recently, scammers have increasingly utilized WhatsApp and Telegram to promote unauthorized investment schemes.

These platforms provide direct access to users, facilitating easier communication and pressure tactics from the scammers.

A recent survey involving 631 traders indicated that Telegram is viewed as the most hazardous platform for trading scams, with 60% of respondents reporting financial losses.

WhatsApp closely follows with similar loss statistics, while platforms such as Facebook (56%), Instagram (51.8%), and SMS (50%) also present considerable risks.

Even X (formerly Twitter) and LinkedIn, which are known for their professional user base, reported loss rates of 43.7% and 45.4%, respectively.

FMA Continues to Release Alerts on Crypto Scams

The FMA’s most recent warning builds upon earlier alerts regarding fraudulent investment schemes.

In May, it warned against scams that utilized fake celebrity endorsements. Scammers were discovered promoting investments using images of New Zealand celebrities in fabricated news articles that appeared to originate from reputable local media.

Furthermore, in March, the FMA highlighted a “clone scam” impersonating BTSWE, a legitimate cryptocurrency exchange in New Zealand.

Last week, a California court imposed a $5 million fine on five individuals involved in IcomTech’s fraudulent Bitcoin Ponzi scheme.

The court ruling found the defendants guilty of fraud and misappropriation of funds through a deceptive cryptocurrency trading operation.

The ruling specifically targets David Carmona, Juan Arellano Parra, Moses Valdez, and David Brend, who were found to be in violation of the Commodity Exchange Act and CFTC regulations.

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