04 October 2024

Check it out with someone else

Investing can be complex at the best of times. It’s getting even more complex when there are potential scammers using more sophisticated techniques to seem legitimate. Gone are the days when a scammer posed as a Nigerian Prince over email: often scams can look real and a scammer may spend months, even years, building trust online.

As scammers get more savvy, we want as many Kiwi as possible clued up on how to spot a scam. It starts with checking it out with someone else. Whenever you’re thinking about investing online, consider talking in person with a friend, a workmate, a family member or someone you trust (like a financial advice provider) before you send money. With their help, you can feel more confident in the decision you’re making.

Our Top Three Ways To Check Out A Scam

Are they promising the world?

Legit offers to invest will never promise you the world. They can’t: investing is risky and there’s never a guarantee you’ll make money, or even get your investment back. If someone you’ve met online is promising you big profit: that’s a red flag. Ask someone else whether it sounds like they’re promising the world. If they are, you might want to avoid.

Are they getting you to act urgently?

Scammers are savvy: they know when we’re under pressure it’s hard to think through a decision. That’s why it’s so important to check it out with someone else. They can support you to think about the offer because you can take it slow. If you and your mate see them pushing you to urgently get on board, dip out.

If you say no, are they letting it go?

Good friends know when to let it go. Does a conversation with someone you’ve met online keep coming back to investing? If you say you aren’t interested, do they let it go? Or do they keep bringing it up? Tell someone else about how they’ve raised the investment opportunity. What do they think? If it seems fishy to someone else, you might want to pump the brakes and say no.

I’m about to invest

If you’re looking to invest for the future, fantastic! It can be an exciting time, but we don’t want to rush into anything without checking it out first. We’ve got some tips for you to keep in mind before you send money. Check the offers out, and go through those offers with someone else you trust before you invest. That way, you can be confident in the decision you’re making.

Spot what's suspicious in an investment

I know someone who is about to invest

Talking with someone about a potential investment they are looking to make is hard, especially if you think it looks like a scam. We know how frustrating and isolating it can feel. We’ve got top tips for you to have an empathetic conversation with someone to check something out before they lose money on a scam.

How to talk with someone about a scam

FAQs

Where are people getting scammed?

Unfortunately, everywhere. Scams are showing up over the phone, via email, on websites, even in online games like Scrabble Go. On first glance, a scam might look legit. Always take a beat and avoid giving your personal information out unless you’re absolutely sure that they are who they say they are.

I’ve gotten a great investment opportunity: it can’t be a scam, right?

Unfortunately, it might be. Have you been recommended an investment by someone you only know online? Have they promised a fantastic return with very little risk? It’s worth checking it out with someone else before you send money.

What is too good to be true?

Great question. If an investment promises you lots of profit with very little risk, that’s likely too good to be true. If someone is telling you that you’d be foolish to miss out on an opportunity, that’s also likely too good to be true. If someone isn’t giving you a full picture of the risks, it’s probably a scam.

I’ve already sent some money, but now I’m not sure it’s legit. What do I do?

Anyone can be scammed, so if it is a scam know that you are not alone. Contact your bank to see if you can reverse the transaction. Stop talking to the person who got you into the investment. It’s okay to be impolite. Lastly, reach out to someone you know who can support you. Victim Support is also here to help you through this difficult time.

Have you seen an investment scam? Please report it so nobody else needs to suffer.

Report a scam