Deposit comparison websites - harvesting investor details

The FMA is concerned about the re-emergence of “deposit comparison” websites which are linked to investment scams. We will continue to add further websites to this warning as we become aware of them.  

How the scam works

1. These websites claim to compare investments, such as term deposit and bonds in New Zealand. They will often claim that returns are guaranteed, or funds are covered under a Depositor Compensation Scheme.  
2. Site users are prompted to enter their personal contact details and proposed investments into an online form. They are then told that someone will contact them with a personalised offer.  
3. A call then arrives from someone claiming to work for a financial institution or acting as a broker. They will present an investment offering returns which are often slighter higher than current market rates. 
4. The scammers email a Product Disclosure Statement (PDS) which does not meet the FMA’s requirements for PDS – for more information on PDS scams see the article: How to identify a product disclosure statement (PDS) or prospectus scam
5. The investor will be asked to fill out application forms and provide identity documents such as a passport to open an account and satisfy relevant “Know Your Customer” requirements.  
6. The investor will then be instructed to transfer their investment to a bank account. They may be provided a dashboard to view investment performance.  
7. Often the victim only becomes aware they are part of a scam when they are locked out of the dashboard, their broker stops answering emails or the term has expired and they can't withdraw their money.