1. What to watch out for
Fake investment opportunities
Be cautious when looking for or reviewing investment opportunities online. Ads or websites that compare investment rates against other investment firms, or claim they have celebrity endorsements, are common approaches that lure investors in.
These sites often ask for your personal information, promising to connect you with great investment offers. However, these websites are often run by scammers with the goal of collecting your personal details. If someone contacts you about an investment opportunity, it is likely a scam.
Tip: In New Zealand, legitimate investment firms are licensed by the Financial Markets Authority (FMA) and will be registered on the Financial Services Providers Register. Always be wary and verify the legitimacy of any offer by using these safeguards before sharing your information.
You can also use checknetsafe.nz to verify that a company’s website is legitimate with their scam checker.
High Pressure Tactics
Scammers frequently use high-pressure tactics, such as: "Today is the final day for this exclusive, once-in-a-lifetime investment opportunity" or ". These are designed to make you commit before you can spot it’s a scam, and this sense of urgency is often a clear indicator of potential fraud.
Another common tactic is secrecy: if you are instructed not to discuss the opportunity with anyone, consider it a significant warning sign. A reputable investment provider would never discourage you from seeking independent advice.
Tip: Pause and think before you act. Authentic investment opportunities will always provide you with the time and opportunity to carry out your own due diligence. Take time to do your own research before making any decisions, and talk to a financial advisor you trust.
Guaranteed returns
Be cautious of offers promoting unrealistic returns. Legitimate investments typically have ups and downs along the way, and need time and patience to generate returns.
Tip: Returns on any investment can never be guaranteed. Be wary of opportunities that are promising a world of high gains and, low risk - if it sounds too good to be true, it probably is.
Impersonator social media investment scams
Scams known as “Pump-and-dump” are on the rise. They use fake ads, deepfake technology that resembles trusted individuals, and encrypted channels to lure investors into coordinated share price manipulation.
A pump-and-dump scam inflates the price of low-value shares that fraudsters have holdings of, so they can sell them at a high price while investors lose out. Scammers build trust through convincing social media ads, and will typically invite people to “exclusive” groups. They build trust by pushing credible shares to these investors, before switching to obscure overseas stocks. They coordinate buys in the group to “pump” prices up, before dumping their holdings when the shares hit their peak. When prices collapse after the “dump”, victims are left with near-worthless shares.
Harbour’s own Shane Solly has been impersonated as part of these pump-and-dump scams, along with other well-known investing and business leaders. If someone is pushing you to invest in something, always verify its legitimacy with a financial adviser who you can trust.
Tip: Treat any “exclusive” investment group with extreme caution, especially any that operate through WhatsApp. Harbour’s team members will never contact you via WhatsApp, and if you’re unsure whether you’re talking to us you should always stop and call us directly via 0800 460 830.
How to protect yourself
Being hesitant helps you be safe when it comes to investments. Here are some habits that you can adopt to combat scams:
- Treat all financial ads on social media with caution. Impersonation is common.
- Avoid engaging with unsolicited investment offers or advice.
- Be sceptical of urgent trade tips, especially for low-priced or unfamiliar shares.
- Always verify investment opportunities are from legitimate sources by using tools like checknetsafe.nz or the Financial Services Providers Register.
- Keep your security strong and current:
- Always use Two-Factor Authentication on any apps and web-based services where it’s available.
- Don’t repeat passwords - use unique, long and unpredictable passwords to keep yourself safe. Password managers are a reliable way to do this securely and accurately.
- Keep your device’s Malware or Anti-Virus software up-to-date.
2. What to check before you invest
Always do your own research and check with a trusted adviser if you’re unsure.
Your first step before any investment should be checking the FMA’s warning and alerts page on their website, where you can quickly verify if there are any known or potential scams using the name of the investment agency or investor you are considering giving money to.
Investing with us? Here’s what investing with Harbour legitimately looks like:
Harbour Asset Management will never communicate with you via social media platforms, including LinkedIn or WhatsApp. Instead, this is what you can expect:
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To invest any amount under $100,000 you can do that via InvestNow, who will require you to open an account by verifying your identity.
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For amounts over $100,000, you need to open an account with Harbour. This can only be done by working with our Client Relations team, and requires you to go through multiple forms of official verification – we will never rush you through that process.
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Once you’ve opened an account and are ready to invest, you then choose how you want to invest your money – we will not push any particular investments onto you.
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All legitimate investments from Harbour come with a Product Disclosure Statement (PDS), which you will be encouraged to see, read and understand. This is to protect you as an investor, which we care about.
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At all stages of investing with us, our website is and will remain:
www.harbourasset.co.nz.If it looks different, it isn’t us.
If you’re suspicious at any time that you’re investing with someone who’s impersonating Harbour Asset Management, use safeguards like checknetsafe.nz to verify that you’re investing via our real website, or call us directly on 0800 460 830.
3. What do you if you think you have been scammed
Anyone can fall victim to a scam, because they are designed to catch you. Whether you’re an experienced investor or someone just starting out, scammers have strategies designed to get you while your guard is down.
If you think you have been scammed, try to turn any panic you feel into action with these steps:
- Stop communicating with the suspected scammer immediately, but don’t delete any existing correspondence. Screenshot or save as much as evidence as you can, you may need it later.
- If you haven’t already, now’s the time to contact your bank. They can potentially recover lost funds and stop any further theft.
- Lastly, report the scam to the same safeguards we mentioned in our prevention tips:
- The FMA: They will investigate any scams you report to them
- Netsafe: They have support tools and advice for victims, and will tell you what you need to do next.
- The New Zealand Police: Scamming is theft, and it’s important to inform local police.
If you’re looking at making an investment, take your time to do research. Stop and think before you act, so you don’t need to make use of these steps.