The Financial Markets Authority (FMA) of New Zealand issued an updated warning list on Wednesday, highlighting two new additions to their radar.
The newly listed entities are BTCSWE and Grandeur Capital Pro, against whose activities the FMA cautioned investors.
BTCSWE, initially a legitimate cryptocurrency exchange in New Zealand, fell under scrutiny due to recent impersonation incidents.
Scammers posed as BTCSWE representatives, reaching out to consumers with promises of recovering lost funds from unsuccessful investments.
“Fabricated documents were supplied to help convince the victim of this individual’s identity and ability to access lost funds,” the FMA elucidated, citing an unfortunate victim who lost a substantial amount of money after falling prey to the scheme.
The FMA confirmed that BTCSWE itself was victimized by imposters perpetrating a “recovery scam.”
On the other hand, Grandeur Capital Pro, the second addition to the warning list, faced accusations of misleading clients.
Investors reported difficulties in withdrawing their funds, prompting the FMA to investigate.
The regulator found that Grandeur Capital Pro operated with a fake address and lacked proper licensing or authorization in New Zealand, leading them to caution investors against engaging with the entity.
“We consider that it is likely that Grandeur Capitol Pro is operating an investment scam.
“We recommend caution when dealing with Grandeur Capital Pro,” the FMA advised.
Despite the FMA’s active efforts in issuing warnings and updating their list, a December 2023 report noted a decrease in financial crimes in New Zealand.
However, an unsettling trend emerged with an uptick in websites impersonating registered entities offering trading and financial services to retail clients.
While the overall number of suspicious companies operating in the country decreased from 111 in 2022 to 89 in 2023, the FMA’s vigilance remains crucial in safeguarding investors against fraudulent activities.