Here are some tips to ensure you do not fall victim to a scam or fraud:
- Never make a transaction for someone else. Without knowing who they are, or what it is for, you could be unknowingly aiding criminal activity, and opening up yourself to criminal prosecution. Also consider that, if you do not know this person, and you were promised payment, there's no guarantee you'll get paid. And there's nothing you could possibly do about it if they're anonymous.
- Do not send funds to anyone you haven't met in person. People have reported loved ones and family being impersonated by scammers on the internet. You must be aware of who you are sending to. Catfishing is a growing problem for people using internet dating. There have been many reports of people thinking they are sending funds to their new boyfriend or girlfriend when actually they are sending their money to a scammer. Our machines should only be used to fund your own personal wallet.
- Do not send funds to a broker for investing. If an investment broker is asking you to send them cryptocurrency to help you invest, this is likely an investment scam. Even if a friend recommended this broker, there have been reports of users friend's accounts being hacked and recommending false investment brokers to others.
- Do not send funds to a shared cryptocurrency wallet. You must be the sole controller of your wallet. If anyone else has access to your wallet, you are at risk of losing your funds.
Localcoin operates a Bitcoin payment service. Like other network providers, Localcoin is not responsible for your actions on the network. Furthermore, do not send Bitcoin to anyone threatening you for a ransom, or stating that you owe money to the Canadian government. They are scammers. Hang up, and call the police if anyone like this contacts you.
If you've been the victim of a scam or a fraud, please follow our guide here: I was the Victim of a Scam / Fraud, What Should I do?
See below for tips from local police and the Government of New Zealand
Protect yourself from scams Increasing your awareness of scams is crucial. Every year, many New Zealanders fall victim to scams, resulting in significant financial losses.
It's challenging to distinguish genuine opportunities from fraudulent ones. Scammers often mimic the trustworthy traits of legitimate companies or individuals.
The best defense against scams is learning to recognize the tactics scammers use.
Four tips to avoid scams:
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Genuine investments are not typically offered unexpectedly.
- In New Zealand, it is illegal to sell financial products through unsolicited calls or emails.
- Enable two-factor authentication to monitor access attempts to your accounts.
- Ignore unsolicited offers from unknown sources.
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Verify the legitimacy of the source:
- Search the company name along with 'scam warning' on a search engine.
- Refer to the Financial Markets Authority's scam warning page.
- Exercise caution with offshore investments as recovery of funds can be extremely difficult.
- Check if the company is registered in New Zealand to provide financial services using the New Zealand Companies Register.
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Seek a second opinion before investing:
- Discuss the opportunity with friends, family, or a financial advisor.
- Consult someone you trust to help identify any potential red flags.
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If it's unclear, avoid it:
- Understand the details of any investment before committing.
- If the investment is confusing or unclear, refrain from proceeding.
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