New Zealand’s Leading Crypto Scam Crisis Response Services.
Harry Satoshi & Nic Turnbull
Free 10 Minute Consultation
Flat rate: $250 NZD per Hour
At Crypto Consulting NZ, we understand the devastating impact that Bitcoin and cryptocurrency scams can have on New Zealanders. Our country is sadly targeted by many sophisticated, international professional scammers. Every day dozens of Kiwis become the victim of online Bitcoin and cryptocurrency scams.
Our expert analysis, years of experience and legal and tax support services can help you navigate this challenging situation. We are real humans, here at your service to help you deal with this as effectively as possible, providing you with direct support and certainty to help you move on from this unfortunate experience.
We are your NZ crypto hitmen for hire – anything we can help you with can be discussed in our sessions.
Crypto Scam Expert
Crypto Engineer
Disclaimer: All content in this guide is intended for educational purposes only and should not be interpreted as financial advice. As an individual, you are entirely responsible for how you conduct your investments and manage your cryptocurrency interests. It is exclusively your own responsibility to perform due diligence and Crypto Consulting NZ recommends taking extreme care and caution with crypto and are not responsible for the outcomes, management, or oversight of your activities.
Scammers often reach out unexpectedly with unsolicited investment advice or offers. Be cautious if you’re contacted through:
Scammers often create a sense of urgency, pushing you to:
Be wary if:
Here are some practical steps to protect yourself from crypto scams in NZ:
If you’ve been targeted by a crypto scam or suspect one, there are several steps you can take for assistance and reporting.
Book a Consulting Session Today
18+ Years Of Combined Experience
Step 1: The Approach – Scammers initiate contact by posing as a love interest, a celebrity, a friend, or even a colleague. They often don’t pitch the scam right away but work to build trust by becoming overly familiar or friendly.
Step 2: The Pitch – Once the scammer has gained the victim’s trust, they introduce a crypto “investment opportunity.” They make bold claims of unrealistic profits, “guaranteed” returns, or even offer love and favors in exchange for the investment.
Step 3: Securing the Investment – At this stage, the scammer persuades the victim to transfer funds to a wallet they control. In some cases, they bypass the investment entirely by tricking the victim into surrendering access to their wallet.
Step 4: The Vanish – After securing the funds, the scammer cuts off all contact, leaving the victim with no way to recover their money or wallet. In fake ICOs or exchanges, the scam typically ends with the project or platform disappearing entirely.
If you believe you have been targeted by a cryptocurrency scam, act quickly to minimize losses and report the incident. Follow these steps:
Not all, but most recovery services promising guaranteed results are fraudulent. Legitimate services, like Crypto Consulting NZ, can provide scam analysis and closure support but will never promise to recover your funds with certainty. Always research the company, check for reviews, and avoid paying upfront fees to unverified services.
Recovering funds lost in a crypto scam can be challenging due to the decentralized and anonymous nature of cryptocurrency transactions. While legal action might be possible in some cases, the success rate is typically low. However, reporting the scam to the New Zealand Police, Financial Markets Authority (FMA), and platforms like Netsafe can help mitigate further incidents and provide documentation for potential tax relief.
A crypto scam is any fraudulent scheme designed to steal your digital assets, often by tricking you into handing over your private keys, login credentials, or directly transferring funds. Much like traditional financial fraud, crypto scammers use deceptive tactics to access your crypto wallet or lure you into making investments in fake projects. These scams come in many forms, including phishing attacks, fake exchanges, Ponzi schemes, and fraudulent investment platforms. Recognizing the warning signs and understanding how these scams work is key to protecting your cryptocurrency from being stolen.
In 2022, the Financial Markets Authority (FMA) received over 400 reports of cryptocurrency-related scams in New Zealand. Common scams included fake exchanges, imposter websites, and romance-linked frauds, with an average loss of $20,000 per victim. This highlights the growing need for awareness and action among Kiwis to protect their digital assets.
Rug pulls have become synonymous with crypto scams, where project creators raise capital from unsuspecting investors, promising to fund a groundbreaking venture. However, as soon as they amass sufficient funds, they drain the liquidity and disappear, leaving investors with worthless tokens. This devastating tactic has affected numerous investors, including those who fell victim to the infamous Squid Game token, which saw its value soar before the developers abruptly vanished.
A rug pull typically occurs with little warning, and by the time investors realize what’s happening, the project developers have become unreachable, disappearing into the anonymous world of blockchain transactions. This scam continues to plague New Zealanders, especially those drawn to flashy new tokens and Initial Coin Offerings (ICOs).
Cloud mining has attracted many Kiwis with promises of passive income through cryptocurrency mining without the hassle of owning and managing mining hardware. These platforms offer the allure of contributing upfront capital in exchange for a steady stream of mining rewards. However, many cloud mining operations turn out to be scams.
In these scams, the companies claim to own vast mining equipment but don’t actually possess the hash power they advertise. Once they receive investments, they either fail to deliver promised returns or disappear altogether. A notable case involves Mining City, which was flagged by the SEC equivalent in the Philippines for its fraudulent activities.
A newer scam targeting Kiwis is known as “pig butchering,” a term used to describe how scammers gradually “fatten up” victims before defrauding them. In this scam, con artists spend weeks or even months building trust, often through romantic or friendly online relationships. They convince their victims to invest in fake crypto platforms, showing impressive (but fake) returns to entice further investments. Once the victim is fully committed and has invested significant funds, the scammer “butchers the pig” by absconding with all the money, leaving the victim with nothing.
Fake crypto wallets have emerged as a significant threat in New Zealand. These malicious apps mimic the appearance and functionality of legitimate wallets but are designed to steal users’ private keys or seed phrases. In one prominent case, Kiwi investors downloaded a wallet from a third-party app store, believing it to be trustworthy, only to find their assets stolen after entering their recovery phrases. Always ensure you’re downloading wallets from official sources like the Apple App Store.
Crypto recovery scams exploit victims of previous scams by offering false hope. After losing funds to a scam, victims are often desperate to recover their money, and this is where recovery scammers strike. They claim to offer services that can retrieve lost or stolen cryptocurrencies but require an upfront payment. Once the victim pays, the recovery service vanishes.
Malware and cryptojacking attacks are becoming more sophisticated, targeting Kiwis through phishing emails, malicious links, or compromised websites. Cryptojacking refers to the unauthorized use of your device’s processing power to mine cryptocurrency, usually without your knowledge. Hackers install cryptomining malware on your system, which quietly runs in the background, draining your device’s resources while generating profits for the attacker.
High-profile cases, like Tesla’s cryptojacking incident in 2018, have raised awareness, but individual users remain vulnerable. Malware can also be embedded in fake apps or websites, leading to stolen funds or compromised personal information.
Phishing remains one of the most prevalent forms of cryptocurrency scams in NZ. Scammers use emails, text messages, or social media to trick victims into revealing private keys, seed phrases, or login credentials. In one instance, a Kiwi investor was tricked into entering their seed phrase into a fake website, leading to the theft of their entire crypto holdings.
Phishing scams often appear legitimate, mimicking well-known exchanges or wallets. Always double-check URLs and avoid clicking on unsolicited links to protect yourself from these scams. The FBI reported losses of over $52 million to phishing.
Fake crypto exchanges are designed to deceive users by mimicking legitimate trading platforms. These fraudulent sites often lure users with promises of high returns or extremely low fees, making them seem like too-good-to-be-true opportunities. Once users deposit funds, they either face issues withdrawing their money, or it is stolen outright.
One infamous case involved the website Trading212.ai, which targeted Kiwi investors with fake advertisements and celebrity endorsements. It offered users incredible returns, but once funds were deposited, users were locked out, and the money vanished. Always verify the authenticity of a platform before depositing your money.
Romance scams involving cryptocurrency are increasingly common in New Zealand. Scammers build online relationships with their victims through dating apps or social media, eventually convincing them to invest in fraudulent crypto schemes. Once the victim sends funds, the scammer cuts off contact.
In 2023, reports of Kiwi victims losing substantial amounts of money to romance scams grew significantly, with many unaware they were being scammed until it was too late. Always be cautious when mixing relationships and financial advice.
Pump and dump schemes is a common scam in the crypto world. Scammers artificially inflate the price of a crypto by promoting it heavily on social media platforms. As the price rises, other investors rush in to buy, further driving the price up. However, the scammers sell off their holdings at the peak, and the price collapses, leaving investors with worthless coins.
NZ investors have been victims of pump and dump schemes that target smaller, lesser-known cryptocurrencies, which are easier to manipulate. Always research thoroughly before investing in any new tokens that seem to be hyped up.
Imposter scams involve fraudsters pretending to be well-known figures in the crypto industry, such as government officials, representatives from crypto exchanges, or even influencers. They may contact victims claiming to offer investment opportunities or assistance with technical issues, but their goal is to steal personal information or funds.
For example, many scammers have impersonated figures like Elon Musk or crypto exchange founders, offering “exclusive” opportunities to invest in new projects. In most cases, once funds are sent, the scammer disappears.
Ponzi schemes are a notorious and long-standing form of fraud that has infiltrated the world of cryptocurrency. These scams promise high returns with minimal risk, luring investors with the illusion of quick wealth. Early participants may receive payouts, but these returns are not generated from legitimate profits. Instead, they come from the investments of new participants, creating a vicious cycle that eventually collapses when no new investors are available.
A prime example of Ponzi schemes targeting New Zealanders is the infamous Shelly Cullen case. Cullen, a well-known scammer, masterminded a series of Ponzi schemes that duped investors out of millions. Her scams revolved around promising her victims substantial returns through “risk-free” cryptocurrency investments. Through clever manipulation and social media promotions, Cullen convinced many to invest in her fraudulent platforms. She made early investors believe the scheme was legitimate by paying them returns, not from profits, but from the investments of newer participants.
Over time, Cullen’s scam grew in size, with more and more Kiwis falling victim to her deceitful tactics. Many of her victims were drawn in by her claims of guaranteed profits and a “fail-proof” investment strategy. Cullen’s downfall came when the Ponzi scheme became unsustainable, and new investments dried up, causing the entire structure to collapse.
Contact@cryptoconsulting.nz
NZBN: 9429051848330
Founded 2022
Terms of Service
Crypto Consulting NZ provides educational information on cryptocurrency and blockchain technology. We do not offer financial advice, and nothing on this site or in our communications should be construed as such. Crypto Consulting NZ is not responsible for any decisions made based on any information or assistance provided.
Copyright 2024 @ Crypto Consulting NZ