New Zealand's financial watchdog has issued warnings about sophisticated scammers using deepfake technology to impersonate well-known local finance experts and commentators on Facebook.
Artificial intelligence is being used to create videos that lure unsuspecting users into investing in fraudulent projects, promoted with the faces of local radio hosts, investment advisors, and television presenters regarded as financial experts.
Facebook Deepfakes Target Kiwi Investors in WhatsApp Scam
The Financial Markets Authority (FMA) identified fake Facebook pages targeting investors by mimicking prominent figures from the local media. These fraudulent accounts use artificially generated videos of the personalities to promote what appear to be legitimate WhatsApp investment advisory groups.
The scale of the problem is evident from the fact that WhatsApp recently removed nearly 7 million fake accounts, many of which were being used to defraud users.
The scam begins when victims encounter Facebook or Instagram advertisements featuring deepfake videos of these respected financial voices. The AI-generated content shows the impersonated figures discussing their supposed investment successes and encouraging viewers to join exclusive WhatsApp groups for free trading advice.
The elaborate deception doesn't stop there. Once victims join these WhatsApp groups, they encounter what appears to be a thriving community of successful investors. However, most group members are fake accounts controlled by the scammers, all praising their supposed mentor's investment guidance and sharing fabricated success stories.
From Fake Celebrities to Fake Mentors
People are drawn into these groups through deceptive video materials that use the likenesses of well-known local figures, including:
- Carmel Fisher, an investment advisor and founder of Fisher Funds Management,
- Frances Cook, a popular personal finance journalist and podcast host,
- Mike Hosking, the well-known radio host and television presenter,
- Gareth Morgan, the economist and founder of Gareth Morgan Investments,
- Simon Tong, a financial commentator and investment strategist.
Victims then connect with an investment "mentor" or "coach" who provides personalized trading recommendations and stock picks. These mentors gradually build trust before introducing victims to fraudulent investment platforms, often requesting payments in cryptocurrency to make transactions harder to trace.
The warning comes shortly after the FMA also cautioned that scams based on popular chat applications are gaining momentum. Although no exact statistics were provided, in neighboring Australia such cases rose by nearly 30% in the first half of 2025, with victims losing three times more than during the same period a year earlier.
The Evolution of WhatsApp Scams
The scammers frequently ask victims to install software on their devices, which turns out to be malware or remote access tools. This gives fraudsters access to sensitive personal and financial information stored on victims' computers and phones.
When investors attempt to withdraw their funds, they hit the final trap. Scammers claim victims must pay additional fees before accessing their money. Even after paying these bogus charges, victims never receive their investments back.
The FMA noted this represents an evolution of previous WhatsApp investment scams the agency has tracked. The addition of deepfake technology and impersonation of trusted local figures makes these schemes particularly convincing to New Zealand investors.
A study conducted last year showed that Telegram, WhatsApp, and Facebook are currently the riskiest platforms when it comes to encountering potential investment scams.
The agency also advises reporting spam messages to the Department of Internal Affairs and seeking support from Victim Support, which provides free emotional and practical assistance to fraud victims.
