FMA warns of deepfake-impersonation pump-and-dump scam targeting New Zealand investors
The New Zealand Financial Markets Authority warned on 19 August 2025 of a deepfake-impersonation pump-and-dump scam using social media ads to target investors. Scammers impersonate business leaders to lure victims into fake investment groups, encouraging them to buy low-value shares that are artificially inflated before the scammers exit, causing investor losses.
What happened
The FMA issued a public warning on 19 August 2025 about a deepfake impersonation pump-and-dump scam targeting New Zealand investors. The scam uses Facebook and Instagram ads featuring deepfake impersonations of well-known Kiwi business leaders to lure investors into fake investor chat groups on messaging platforms such as WhatsApp.
Victims are encouraged to buy low-value shares in companies listed on overseas exchanges to artificially inflate the share price, while scammers sell their own inflated shares for profit. After investors suffer losses, scammers falsely claim victims are entitled to compensation and collect personal information and further payments.
Reported impact
The FMA has received multiple complaints from investors who lost significant amounts. The FMA indicated that reported complaints are likely only the tip of the iceberg, with scammers potentially running multiple campaigns simultaneously on different company shares.
Index analysis
The scam operates as part of a global network aimed at market manipulation, using deepfake impersonations of business leaders on social media advertising platforms to deceive investors. This represents a pump-and-dump scheme, a form of market manipulation where false information artificially drives share prices before scammers exit at inflated prices.
Governance controls
The FMA encouraged New Zealanders to exercise caution with investment advice from social media sources and to report suspicious activity to social media channels, the companies involved, and the FMA.
Classification
Sources and evidence
Sources not yet published
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