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.

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.”