Cryptocurrency scams are increasing in New Zealand, with Kiwis losing millions each year to sophisticated fraud schemes. In 2024 alone, over 50 clients came to us after being targeted by scammers. This guide covers the most common scams, how to recognise them, and what to do if you've been affected.
If you've been scammedAct immediately. Stop all communication with the scammer, preserve all evidence (screenshots, emails, wallet addresses), and report to NZ Police and Netsafe. Time is critical for fund recovery.
Romance & Pig Butchering Scams
The most financially devastating scams targeting New Zealanders involve fake romantic relationships built over weeks or months on dating apps and social media.
How They Work
Scammers create fake profiles on Tinder, Bumble, Facebook, or Instagram. They build trust over time, then introduce "investment opportunities" in cryptocurrency or forex trading. Victims are shown fabricated profits on fake trading platforms and encouraged to deposit more funds. When they try to withdraw, the platform disappears.
Red FlagsOnline romantic interest quickly steers conversation to investment or cryptocurrency. They share screenshots of trading profits. They pressure you to invest "before the opportunity closes". The trading platform has a .xyz or non-standard domain.
$180,000 Romance Scam via Fake Crypto Platform
A Wellington professional was contacted on a dating app by someone claiming to be a Singapore-based trader. Over 8 weeks, they built a relationship and introduced her to a "crypto investment platform". After depositing $180,000 across multiple transfers, the platform locked her account and demanded a 30% "tax payment" to release funds. We traced the wallet addresses to a known scam cluster and provided evidence to NZ Police, but funds had already been moved through mixers.
Fake Exchanges & Investment Platforms
Scammers create convincing replicas of real exchanges or entirely fabricated trading platforms. These sites look professional, show realistic charts, and even allow small "withdrawals" initially to build trust before stealing larger deposits.
Verify the domain carefully
Real exchanges: binance.com, coinbase.com, easycrypto.com. Fake: binannce.com, coinbase-nz.com, easy-crypto.co. Always check the URL letter by letter.
Check for NZ financial licensing
Legitimate NZ exchanges are registered with the Companies Office and comply with AML/CFT regulations. Search the FMA register or ask for their Financial Service Provider (FSP) number.
Test withdrawals before large deposits
Deposit a small amount first and withdraw it immediately. Fake platforms will block withdrawals or demand "verification fees" or "taxes" before releasing funds.
Look for community presence
Real exchanges have verified Twitter/X accounts, active Reddit communities, and customer support that responds. Search "[platform name] scam" and see what comes up.
Giveaway & Impersonation Scams
Scammers impersonate Elon Musk, Vitalik Buterin, or other crypto figures on Twitter/X and YouTube, promising to "double your crypto" if you send them Bitcoin or Ethereum first. These are always fake.
The rule is simple: No legitimate person or company will ever ask you to send crypto first in order to receive more back. This applies to all "giveaways", "airdrops", or "promotions".
Rug Pulls & Fake Tokens
New cryptocurrency projects are launched, heavily promoted on social media, and attract investment. Once enough money is deposited, the developers drain the liquidity pool and disappear. This happened with dozens of meme coins and DeFi projects in 2024.
Protect Yourself
- Never invest based solely on social media hype or Telegram groups
- Check if the token contract is verified on Etherscan or BSCScan
- Look for liquidity locks (tokens can't be sold by developers for X months)
- Research the team — are they anonymous? Have they built successful projects before?
- If it promises guaranteed high returns, it's likely a scam
What to Do If You've Been Scammed
Stop all contact immediately
Do not respond to any further messages. Scammers often pose as "recovery agents" after the initial scam to extract more money.
Preserve all evidence
Screenshot conversations, transaction IDs, wallet addresses, websites, emails. Save everything to a folder — this is critical for police reports and potential recovery.
Report to NZ authorities
File a report with NZ Police (online or in person) and submit a complaint to Netsafe. If the scammer used a NZ bank account, report to your bank immediately.
Engage a professional investigator
For amounts over $10,000, blockchain forensics can sometimes trace funds and identify scam networks. We've assisted police in several successful prosecutions.
Beware of recovery scamsAfter being scammed, many victims are contacted by "recovery agents" claiming they can get funds back for an upfront fee. These are secondary scams. Legitimate recovery services charge on success or transparent hourly rates.
Been affected by a crypto scam?
I offer scam investigation and blockchain tracing services across NZ. Free initial consultation.
Prevention Tips
- Never send crypto to receive more back. This is always a scam, no exceptions.
- Verify independently. If someone contacts you about an investment, research it separately. Don't click links they send.
- No legitimate service demands payment in crypto only. Real businesses accept bank transfers and have proper invoicing.
- Be skeptical of guaranteed returns. If it sounds too good to be true, it is.
- Use hardware wallets for large amounts. Even if scammed into sending funds, you still control your private keys with a hardware wallet.