The FMA says it has seen an increase in the number of investment scam victims reporting they had entered personal details into comparison sites. (file image) Photo: 123RF
New Zealanders are being warned against a "phoney" website used for comparing interest rates, which is believed to be collecting users' personal data for illicit purposes.
The Financial Markets Authority (FMA) urged people to "exercise extreme caution" when dealing with the website "Compare Fixed Term Deposits" (CFTD).
The FMA believed the website was harvesting personal information for criminals to sell fake investments.
The website claimed to offer consumers a way to compare all registered and regulated fixed income investments in the country and find the highest rates, the authority said.
However, the FMA said the website did not contain any comparison data and instead asked users to fill out a form with their personal details for a third-party to contact them.
The website indicated it was based in Australia and referred to Australian standards and regulations, the FMA said.
"It states in its terms that it is permitted to provide factual information that is sourced from external credit providers. However, both the Australian and New Zealand Companies Offices and financial regulators have found no record of CFTD," it said.
The FMA had seen an increase in the number of investment scam victims reporting they had entered personal details into comparison sites, such as CFTD.
It said victims were then contacted by people claiming to be from well-known banks such as Citibank or HSBC.
Some victims had lost hundreds of thousands of dollars to the fake schemes, it said.
"We believe this website is a front used to harvest personal information from New Zealanders for criminals to exploit," FMA response and enforcement executive director Paul Gregory said.
He encouraged people to only deal with locally-registered entities.
"If someone is pushing you into an investment opportunity, step back and ask yourself: why am I being offered this over the phone? Is this legitimate? Don't be rushed, be sceptical and ask lots of questions. Hit the pause button before sending or committing any of your money to people you cannot truly verify," Gregory said.
"Most often with scams like these, your money is transferred overseas and it is incredibly difficult for New Zealand authorities to get back."
From January to June this year, the FMA received 154 complaints about investment scams and fraud.