Financial Markets Authority (FMA) Warns Against Growing YouTube Crypto Scams and Fake Investment Platforms

The Financial Markets Authority (FMA) in New Zealand has raised the alarm about a growing cryptocurrency investment scam that's becoming popular on YouTube. Scammers are using the platform to push fake crypto trading websites, tricking people into fraudulent investments disguised as legitimate opportunities.

This type of YouTube scam has become increasingly common, targeting unsuspecting crypto enthusiasts. It’s not the first time YouTube has been used for such schemes either. As TheHolyCoins reported in the past, one high-profile example was the Elon Musk deepfake scam, where a fake live stream impersonated Musk during a SpaceX Starship launch.

How YouTube Crypto Scams Target Investors

Scammers use a multi-step approach to deceive potential victims. Here’s how the process typically unfolds:

1. YouTube Videos and Social Media Lures
   Scammers post videos on YouTube, often claiming to offer “exclusive” crypto tips or trading strategies. Many victims fall for this type of YouTube scam because of the professional appearance of the videos.
2. Private Group Invitations
   Viewers are invited to join private WhatsApp or Telegram groups, often with the promise of prizes or gifts.
3. Unrealistic Promises
   Once in the group, scammers present themselves as “mentors” or “investment coaches,” making bold claims such as, “Earn $2,000 to $7,000 daily with no risk.”
4. Introduction to Fake Platforms
   Victims are introduced to counterfeit investment platforms that mimic real cryptocurrency exchanges. These platforms are often part of a larger YouTube scam operation designed to appear legitimate.
5. Small Investments Turn into Big Losses
   Victims are encouraged to start with small investments. Once trust is built, they are pressured into depositing larger sums. When attempting to withdraw funds, victims are blocked or asked to pay withdrawal fees, with no money ever returned.

FMA’s Tips to Stay Safe from Crypto Scams

The FMA urges New Zealanders to verify any trading platform using the Financial Service Providers Register (FSPR), ensuring it is legally authorized to offer financial services in the country. If you encounter a YouTube scam or suspicious group chats, avoid sharing personal details or engaging further.

Steps to Take If You’re a Victim of a Crypto Scam

• Cut Off Contact Immediately
  Stop all communication with the scammer and block them on all platforms. Reporting the YouTube scam to authorities like YouTube itself can help prevent others from falling victim.
• Report to Authorities
  Notify YouTube, WhatsApp, or Telegram about the fraudulent accounts. Additionally, report spam emails or texts to New Zealand’s Department of Internal Affairs.
• Contact Your Bank
  If you’ve sent funds, ask your bank or payment provider to trace or reverse the transaction.
• Seek Emotional Support
  Scams can be distressing. Share your experience with trusted friends or contact Victim Support at 0800 842 846 for guidance.

List of Fake Investment Websites to Avoid

The FMA has identified several websites connected to these fraudulent activities. Be cautious if you come across the following:

• bi-investments.com
• phoenix-trades.com
• tradesmartsignals.com
• bitstockassets.com
• peaktradeempire.com

For the full list of suspicious sites, refer to the FMA’s public warning. Always exercise caution when dealing with online investment opportunities.

Why YouTube Scams Are a Growing Threat to Crypto Investors

With advancements in technology, crypto scams are becoming more sophisticated and harder to identify. Scammers now use AI tools to create realistic deepfake videos, clone voices, and imitate trusted websites and brands. These methods allow them to appear more credible, making it easier to deceive even cautious cryptocurrency investors.

These scams don’t just target experienced investors—they also prey on people who may not be familiar with how the crypto market works. By mimicking well-known platforms and individuals, scammers exploit trust and confusion, making it increasingly important for everyone to verify information before engaging with any investment offer.