AI gives rise to more fake FSP scams

Scammers are finding new and creative ways to impersonate New Zealand financial service providers with the help of AI, prompting the FMA to get more specific with its public warnings.

Tuesday, February 25th 2025, 6:03AM 1 Comment

by Kim Savage

Scammers are finding new and creative ways to impersonate New Zealand financial service providers with the help of AI, prompting the FMA to get more specific with its public warnings.

One such scam plays on the theme of rising interest rates and sees term deposit comparison websites pop-up inviting people to add their contact details. The scam victim then receives a call from an impersonator of a New Zealand bank, a copy of a convincing PDS, with an offer of a term deposit rate slightly better than those available in the market.

“These scams were very, very convincing, and we'd see very regular cases of people being convinced to transfer hundreds of 1000s of dollars overseas to these scammers,” says Nick Flaws, from the FMA Regulatory Services team.

“The tactics are shifting and AI just makes it easier for scammers to create these impersonations, to build their websites and to come up with the communications to draw victims in.”

The fast-evolving landscape has prompted the FMA to issue more bespoke warnings to alert the public and financial services sector to the specifics of scams affecting consumers. Earlier this week, the FMA issued a warning about a scam involving 96 fake online investing platforms, where investors are shown their fake “profits” and cannot withdraw their funds.

“That kind of scope for these scams is not uncommon, and it's only going to get bigger in future,” says Nick Flaws.

“The tactics are shifting and AI just makes it easier for scammers to create these impersonations, to build their websites and to come up with the communications to draw victims in.”

Fake cryptocurrency exchanges and internet banking websites are also common and real businesses can sometimes find themselves being impersonated. The FMA’s advice for FSPs is to keep an eye on their brand and name.

“Perform regular searches for your company name and your company details, just to keep an eye out for any websites that are popping up and might be impersonating you.

“A lot of these fake websites will link directly through to a New Zealand company's details on the Companies Register, and so if the official website for your company is there, there can be a point of intervention, an opportunity for someone who is investigating this fake,” says Nick Flaws.

The FMA says it takes its oversight role seriously and regularly scans for harmful content, at times using its powers to get websites taken down.

“Our disruption activities have the benefit that we can act with speed control and visibility over the outcome,” says FMA Regulatory Services team member Elizabeth Asmerom Asfaha.

“After all, the faster we can act to get the harmful content removed, the more we reduce the chance of people falling victim to the scam.”

Tags: AI FMA scam