The FMA issued 36 public warnings about suspected scams and other non-compliant entities from January to June 2021 – up 29 per cent on the 28 warnings issued during the same period in 2020, and up 80 per cent the 20 issued in the first half of 2019.
The FMA said it had noted a rise in scammers using social media platforms to identify and contact possible victims. This would often involve friending and messaging, asking questions or making suggestions in post comments and conducting fake surveys.
Romance-investment hybrid scams were also targeting prospective victims on popular dating apps, winning people's trust with sophisticated back-stories and accomplices.
Victims were then convinced to transfer money overseas to buy supposed investments.
Impostor websites, meanwhile, use names, logos, addresses, certifications and other details of legitimate NZ businesses to fool investors to part with their money.
Two recent examples included scammers impersonating Kiwifruit company Zespri and derivatives issuer Rockfort Markets.
FMA general counsel Liam Mason said scammers are taking advantage of the pandemic crisis either by using Covid-19 as part of their pitch, or using the economic climate to prey on peoples' fears and desires.
"Scammers are constantly looking to evolve their approach and this treacherous trio of scams can be sophisticated, the red flags are not always obvious. Scammers want to be believed and are willing to play the long game to gain your trust over several months," he said.
"We strongly encourage New Zealanders to only deal with locally registered entities and if you see an investment opportunity, step back and ask yourself if this is real. Don't be rushed, be sceptical and ask lots of questions."
Mason said some of the signs of a scam included little or no information in writing, asking for payments via unusual platforms, continually requesting money and exerting pressure.
More information about how to spot investment scams can be found on the FMA's website.
