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Fake Celebrity Ads for Cryptocurrency and FX Trading Scams Catch Kiwi Regulator’s Attention
New Zealand’s Financial Markets Authority (FMA) has issued a public warning against false celebrity advertisements promoting cryptocurrency and forex investment schemes on social media. Announced today (Monday), the regulator highlighted that the investment websites involved in these fake promotions are scams.
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“We have identified several websites that are part of this scam, but we believe there may be others linked as they change frequently,” the FMA said, adding that the announcement was based on several reports it received.
“We are aware of several New Zealanders who have invested via these websites and are now unable to withdraw funds, with additional fees required before allowing withdrawals.”
Tactics to trap victims
Explaining how such scams work, the FMA explained that the scammer creates adverts on a social media platform containing a fake news article, appearing to be from a reputable New Zealand media platform featuring images of local celebrities.
“The announcement does not at first glance appear to be about investment,” the regulator added.
Clicking on these ads results in fake news articles on an impostor website showing fake interviews with celebrities discussing how to make big profits using a certain investment platform. These articles also contain links to fraudulent platforms, and after potential victims provide their contact details, they receive a call from “someone claiming to be a broker or financial advisor”, demanding a payment of 250 dollars or 250 euros .
Scammers even have victims download software to remotely access their computers. To give a false impression of legitimacy, scammers initially transfer “profits” to victims’ bank accounts, and then ask them for larger investments.
“When the victim asks to withdraw funds, they are told that they must first pay a high fee to release the money. But even if these fees are paid, the money is not returned,” the regulator stressed.
Authorities are wary of fake celebrity endorsements
The threat of fake celebrity endorsements is widespread. Scammers usually use existing photos or video clips of celebrities to promote fake investment schemes, making them appear authentic. Artificial intelligence (AI) tools. have made such scams even more rampant. These fake endorsements usually promote risky derivatives and cryptocurrency trading.
Social media platforms like Facebook have even faced legal action for allowing fake celebrity advertisements to promote cryptocurrency scams. In 2019, a Dutch court ruled against the social media giant, ordering him to remove fake celebrity endorsements.
Earlier this year, fake news articles and deepfake videos of celebrities and public figures, including Elon Musk, caught the attention of New Zealand’s neighbor. Then, the Australian warned consumers to be wary of these scamsespecially on social media, where they often appear as sponsored posts or ads.
“The FMA recommends extreme caution when interacting with social media advertising using the image of celebrities to promote investment opportunities,” the New Zealand regulator added in its latest warning. “If you come across these ads, do not click on them or provide them with your personal information.”
New Zealand’s Financial Markets Authority (FMA) has issued a public warning against false celebrity advertisements promoting cryptocurrency and forex investment schemes on social media. Announced today (Monday), the regulator highlighted that the investment websites involved in these fake promotions are scams.
“We have identified several websites that are part of this scam, but we believe there may be others linked as they change frequently,” the FMA said, adding that the announcement was based on several reports it received.
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“We are aware of several New Zealanders who have invested via these websites and are now unable to withdraw funds, with additional fees required before allowing withdrawals.”
Tactics to trap victims
Explaining how such scams work, the FMA explained that the scammer creates adverts on a social media platform containing a fake news article, appearing to be from a reputable New Zealand media platform featuring images of local celebrities.
“The announcement does not at first glance appear to be about investment,” the regulator added.
Clicking on these ads results in fake news articles on an impostor website showing fake interviews with celebrities discussing how to make big profits using a certain investment platform. These articles also contain links to fraudulent platforms, and after potential victims provide their contact details, they receive a call from “someone claiming to be a broker or financial advisor”, demanding a payment of 250 dollars or 250 euros .
Scammers even have victims download software to remotely access their computers. To give a false impression of legitimacy, scammers initially transfer “profits” to victims’ bank accounts, and then ask them for larger investments.
“When the victim asks to withdraw funds, they are told that they must first pay a high fee to release the money. But even if these fees are paid, the money is not returned,” the regulator stressed.
Authorities are wary of fake celebrity endorsements
The threat of fake celebrity endorsements is widespread. Scammers usually use existing photos or video clips of celebrities to promote fake investment schemes, making them appear authentic. Artificial intelligence (AI) tools. have made such scams even more rampant. These fake endorsements usually promote risky derivatives and cryptocurrency trading.
Social media platforms like Facebook have even faced legal action for allowing fake celebrity advertisements to promote cryptocurrency scams. In 2019, a Dutch court ruled against the social media giant, ordering him to remove fake celebrity endorsements.
Earlier this year, fake news articles and deepfake videos of celebrities and public figures, including Elon Musk, caught the attention of New Zealand’s neighbor. Then, the Australian warned consumers to be wary of these scamsespecially on social media, where they often appear as sponsored posts or ads.
“The FMA recommends extreme caution when interacting with social media advertising using the image of celebrities to promote investment opportunities,” the New Zealand regulator added in its latest warning. “If you come across these ads, do not click on them or provide them with your personal information.”