Crypto Scams Targeting New Zealand Investors
New Zealand investors face a growing volume of cryptocurrency fraud through fake trading platforms, celebrity endorsement scams on social media, and pig butchering schemes that the FMA has specifically flagged as high-risk for the New Zealand market.
Part of: Crypto Scams
Last reviewed: 1 June 2026
The Financial Markets Authority (FMA) has produced multiple consumer alerts specifically about cryptocurrency investment scams targeting New Zealanders, including a detailed warning about the use of fabricated FMA registration numbers by overseas fraudulent platforms.
New Zealand's high household savings rate, relatively high average incomes, and strong digital literacy make it an attractive target. Victims frequently report having been introduced to schemes through Facebook ads featuring fabricated endorsements by New Zealand public figures.
How this scam works on New Zealand
A Facebook or Instagram ad appears to show a prominent New Zealand businessperson or media personality endorsing a cryptocurrency trading platform. Clicking the ad leads to a professionally designed site that requests a small initial deposit of NZD 250 to open an account.
A 'broker' calls the new account holder within hours to guide them through their first trade. Returns are impressive from the first day. The broker calls regularly, building rapport, and encourages additional deposits citing favourable market conditions.
Withdrawal eventually triggers a request for NZD-denominated 'FMA licensing fees' or capital gains tax payments that must be settled before funds can be released. Payment of these fees produces new, larger requirements. The platform eventually becomes unreachable.
Common red flags
- Facebook or Instagram ad using a New Zealand celebrity's image to promote a crypto platform
- Platform claiming FMA registration that cannot be verified at fma.govt.nz
- Broker who calls proactively after account opening and recommends time-sensitive trading opportunities
- Withdrawal blocked by FMA fee payments or NZ capital gains tax requirements payable to the platform
- Platform with an NZD-denominated dashboard but contact details limited to an overseas email address
How to protect yourself
- Verify any investment platform against the FMA register at fma.govt.nz and the investor alert list
- Understand that New Zealand does not have a capital gains tax on most investments — any such claim is a red flag
- Never deposit additional funds to 'unlock' a withdrawal
- Report suspicious crypto platforms to the FMA before investing
- Contact Netsafe for support if you have been targeted at netsafe.org.nz
How to report it
- Report to the FMA at fma.govt.nz or call 0800 434 566
- Report to Netsafe at netsafe.org.nz or 0508 638 723
- File a police report with NZ Police at police.govt.nz
Frequently asked questions
How does the FMA suggest New Zealanders verify a crypto trading platform before investing?
The FMA maintains a public warnings and alerts list of unregistered and suspicious financial service providers — check any platform's name against it before depositing. Genuine providers operating in New Zealand should be registered on the Financial Service Providers Register. Be cautious of platforms that appeared recently and promote via unsolicited social media contact.
What should I do first if I've already put money into a suspicious crypto platform?
Stop depositing further funds immediately, even if the platform shows fake "growing" balances or demands a fee to withdraw. Report it to the FMA and Netsafe, and if funded via bank transfer, contact your bank right away about possible recall. Keep all records of the platform, communications, and transactions.
Can I get my money back from a fake crypto trading platform in New Zealand?
Recovery depends heavily on how you paid — bank transfers reported quickly have some chance of being recalled, while crypto sent to a scammer's wallet is very difficult to reverse. Report to the FMA, Netsafe, and police regardless. Whether anything is recoverable may depend on the payment method and timing — your bank can confirm options.
Does New Zealand have a capital gains tax that an investment platform can charge?
New Zealand does not have a comprehensive capital gains tax on most investment gains (property and share trading have specific rules). Any investment platform demanding payment of 'New Zealand capital gains tax' as a condition for releasing funds is fabricating a tax liability that does not exist — this is a clear scam indicator.