With the rise of digital currencies came the increase of cryptocurrency scams. Here’s where to learn more about what crypto currency scams are and how to avoid them.

What are cryptocurrency scams?

Digital currencies, including the well publicised Bitcoin and others such as Ethereum, have been around since 2008 and although these are popular investment options, the currencies aren't regulated in New Zealand. The Financial Markets Authority (FMA) website has a good overview of cryptocurrencies.

Cryptocurrencies and anyone trading in digtal currencies are often the target of attacks, online fraud and scams. In recent years there have been attacks on cryptocurrency exchanges, the places where currencies are stored, leading to investors losing significant sums. More recently scams are circulating on social media sites, offering unrealistic investment returns. Some of these scams claim to be endorsed by well-known New Zealanders or are run as pyramid type schemes where investors are encouraged to bring others on board the scheme.

CERT NZ have some further details about cryptocurrency security and The Spinoff show you how to spot a cryptocurrency scam.

Tips to avoid cryptocurrency scams

  • Be aware of the risks.
  • Know what you’re getting into when purchasing cryptocurrency.
  • Do your research into the platforms you're using to purchase or trade digital currencies.
  • Use extreme caution when interacting with any digital ads offering cryptocurrency investments.

Helpful resources

What to do if you've been scammed

Anyone can fall victim to online scams. If you suspect that you've been scammed, get in touch with us as soon as possible.

Get in touch

Call us on 0800 113 355 (or +64 4 473 1133 from overseas) if you think you've been scammed.

Report suspicious activity

If you think you’ve been sent an email that doesn’t look like it’s from us, forward it to suspicious.email@kiwibank.co.nz.