06 August 2024

Deepfake video scam warning: fake news stories, political endorsements - multiple trading platforms

The FMA has received several reports about a scam using fake endorsements supposedly coming from New Zealand politicians. Their names and images are being faked and misused to promote online investment schemes.

This scam uses fake news stories, spread through multiple websites and advertisements, with the names of investment schemes and websites used to promote the scam changing frequently.

Updated 9 October 2024

The FMA is aware that this scam is now using fake news articles featuring claims that New Zealanders will receive “income” or “dividend” payments from IRD. The fake claims say that money will be sent to New Zealanders after they sign up with an online investment platform.

These fake news articles include photographs of New Zealand Prime Minister Christopher Luxon and other New Zealand politicians and feature headlines such as: “By the order of Christopher Luxon, New Zealand residents will start receiving income from taxes.” Inland Revenue has confirmed these claims are false. There is no pool of tax funds becoming available for distribution to New Zealanders.

How the scam works

Scammers draw in victims through advertisements placed on social media platforms and news aggregators. There are several variations of these advertisements. Some ads:

Show an image of a politician next to a fictional quote about a new investment opportunity e.g., "According to Christopher Luxon, all citizens of New Zealand can officially retire at the age of 45!"
Contain generic images, with a headline designed to promote fear about the stability of New Zealand pensions e.g., "PENSION PAYMENTS WILL BE CANCELLED IN THE NEW ZEALAND!".
Feature deepfake videos of politicians, including New Zealand Deputy Prime Minister Winston Peters. These fake videos show the politician being interviewed about a new investment opportunity which they have invested in personally, or which is claimed to be endorsed by the government.

These advertisements link to fake news articles featuring false quotes and endorsements from politicians, usually promoting an investment platform. These articles are often made to appear as though they are being published by legitimate New Zealand media organisations.

These fake news articles have links to other websites, advertising investment platforms or promoting educational materials about investments. The websites include registration forms, where potential victims are prompted to enter their contact details.

Scammers will then contact the victim claiming to be an investment broker and give instructions for investing through the platform. Victims are encouraged to make a small investment at first (around US$250/NZ$420). Requests for larger investments will likely follow.

Exercise caution

The FMA recommends extreme caution when engaging with social media advertisements or links in news aggregators that include fake political endorsements promoting investment opportunities.

Do not click on these ads or links, and do not enter your personal information into these websites.

If you have been contacted by a scammer after entering your personal information into one of these websites, do not make any payments or transfer any money to the scammers.

What to do if you think you have been scammed?

Contact your bank immediately. Ask if a transaction reversal is possible. If you sent money using another payments service provider, ask them to trace the funds.
If you have downloaded remote access software on the instructions of the scammers, immediately contact an IT professional to have your device checked for malware. If you have accessed your bank account or other payment systems while the remote access software was operating on your device, report this to the relevant account providers.
If you keep getting phone calls from scammers, report them to your telecommunications provider.
If you are getting spam emails and text messages, report these to the Department of Internal Affairs.
Tell a trusted relative or friend what has happened. They may help you see the situation more clearly, help you deal with the scammers, and suggest what to do next.
Contact Victim Support on 0800 842 846. They can provide free emotional and practical support and information.

Contacts to be wary of:

Update 19 September 2024

Entity name: Top First Group
Website: topfirstgroup.com
Email: [email protected]

Update 08 October 2024

Entity name: Education Home
Website: educationh.net
Email: [email protected]

Update 9 October 2024

Entity names: ProClubTeam; Finance Phantom; Immediate Edge
Websites: Proclubteam.com; Finance-phantom.nz; Pleasantery.com (Immediate Edge)
Email: [email protected]; [email protected]

Update 18 October 2024

Entity: VictoryXcap
Website: victoryxcap.com
Email: [email protected]; [email protected]; [email protected]; [email protected]

Update 1 November 2024

Entity: Invepex
Website: invepex.com

Update 4 November 2024

Entity: Finance Phantom AI™
Website: financephantomai.com

Update 5 November 2024

Entity: BTCap
Website: BTCap.co
Email: [email protected]; [email protected]

Update 6 November 2024

Entity: TradeTide
Website: TradeTide.net
Email: [email protected]

Update 18 November 2024
Entity: Vergo Markets
Website: Vergomarkets.co