New Zealand Authorities Issue A Warning Over Rampant Crypto-related Online Scams

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With the prompt demand for investments in Cryptocurrencies, scammers have also upped their game in tapping into the market. A report by the New Zealand police has revealed an increase in crypto fraudsters who are targeting unsuspecting investors. The Canterbury police are has sent out a stern warning urging the public to exercise caution with any online investment schemes. This follows an online transaction, which turned out to be an online scam.

The scam involved the loss of close to $320,000 NZD ($213,000 USD) by an investor. Reports have it that the unidentified victim made multiple investments in an online cryptocurrency scheme. The person continued to invest as the investment grew. Apparently, the scammer reportedly kept in constant contact with the investor pushing for more investment with a promise for extremely good returns.

Non-tech savvy users are the victims of rampant crypto-related online scams

A majority of those dealing with Cryptocurrencies are not tech savvy. Thus it is becoming very easy for the fraudsters to take advantage of them. They are also excited by what seems to be a ?get rich quick? scheme. As a result, they throw caution to the wind as the scammers smile their way into banks. Apparently, the said scammers are very persistent and sound incredible. This is according to Senior Sergeant Paul Reeves. Nonetheless, the report from the police does not describe how exactly the online scam happened.

But the cryptocurrency industry is largely unregulated in New Zealand

Traders prefer the use of Cryptocurrencies because they are by far user-friendly compared to the flat money. However, their use has left hundreds of people vulnerable and at a loss of their hard-earned cash. As Geoff Bascand, the Deputy Head of New Zealand?s Reserve Bank reports, ?A digital currency is easier and faster to distribute around the country than banknotes because it doesn?t need to be transported.?

However, it is surprising that the New Zealand market has remained unregulated despite the skyrocketing cases of scamming schemes. According to the country?s financial regulator, Cryptocurrencies and initial coin offerings (ICOs) are securities. It is not clear whether the CERT New Zealand, which is the country?s cybersecurity watchdog will implement any measures to get rid of the online scams.

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