The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko – is urging New Zealanders to remain vigilant and protect themselves from investment scams this holiday season. This comes during a period of escalating scam reports to the FMA.
Recently, the FMA has published five warnings about scammers pretending to be from financial institutions here and abroad that send false product disclosure statements (PDS) for term deposits and bonds. The quality of these documents is becoming increasingly sophisticated and offer interest rates that look realistic but are marginally higher than legitimate offers and have induced people to hand over money.
The FMA has issued 12 warnings about PDS scams in 2023, and they are now impersonating legitimate New Zealand companies, including local banks. By comparison, the FMA posted five warnings about this type of false PDS scam in 2022, most of these involved impersonating international or overseas companies.
