Netsafe Reports Significant Spike in New Zealand Investment Scam Losses

New Zealand is facing a sharp escalation in the financial impact of investment fraud, with reported losses more than doubling in a single month. Data released on 4 May 2026 indicates that investment scam losses reached $81,500 in April 2026, a substantial increase from the $39,100 recorded in March 2026. This surge in total losses is accompanied by a significant rise in the severity of individual cases, as the average loss per victim climbed from $7,800 in March to over $20,000 in April.

The rapid increase in financial harm is attributed to the growing sophistication of fraudulent schemes, which increasingly utilise artificial intelligence and deepfake technology to deceive individuals. These scams often feature high-quality AI-generated content, including deepfake videos of prominent New Zealand figures and fabricated celebrity endorsements. The objective is to create a false sense of legitimacy and urgency, leading victims to commit larger sums of capital to non-existent investment opportunities.

Sophisticated Impersonation Tactics

Fraudulent operations have targeted several high-profile New Zealanders to bolster the credibility of their schemes. Deepfake videos have impersonated Prime Minister Christopher Luxon, Westpac NZ CEO Catherine McGrath, NZ First leader Winston Peters, and Kiwibank CEO Steve Jurkovich. These digital manipulations are designed to mimic the voice and likeness of trusted leaders, often promoting cryptocurrency platforms or high-yield trading programmes.

The use of these tactics is not a new development, but the frequency and quality have intensified. The Financial Markets Authority first issued warnings regarding deepfake tactics in August 2024. A notable historical case from 2024 involved a Taranaki grandmother who lost $224,000 after being misled by a deepfake video of Prime Minister Christopher Luxon promoting a fraudulent cryptocurrency investment. The current spike in data suggests these methods continue to be highly effective despite ongoing public education efforts.

Institutional Monitoring and Social Media Trends

Monitoring of digital platforms reveals the scale of the offensive. Within a single 24-hour period, the Financial Markets Authority identified 110 unique scam advertisements on Meta platforms, including Facebook and Instagram. Furthermore, since March 2026, the organisation has flagged over 190 fraudulent trading websites for removal. These sites are often designed to look like professional financial institutions or news outlets to further the deception.

Social media has become the primary vector for these interactions. Westpac NZ reported that 64% of all scam cases handled by the bank in 2026 originated on social media platforms. This represents a notable increase from 2025, when 57% of scam cases were traced back to social media. The shift highlights the difficulty in policing digital advertising and the ease with which offshore criminal organisations can target New Zealand residents.

Long-term Financial Impact and Underreporting

Over the past 12 months, investment scams reported to Netsafe have accounted for $1.23 million in total losses. The average loss per victim over this one-year period stands at $14,800. While the monthly figures for March and April 2026 are based on sample sizes of 25 and 22 victims respectively, the upward trend in the value of losses is a point of concern for consumer protection agencies.

The broader landscape of fraud in New Zealand suggests that the reported figures are only a fraction of the total economic damage. While reported annual fraud losses in New Zealand are NZD 265 million, the actual annual losses are estimated to be closer to NZD 1 billion due to significant underreporting. Victims often feel a sense of shame or believe that recovery of funds is impossible, leading many cases to go unrecorded.