TechFlow reported on June 14, citing New Zealand B2B News, that fraud-related crimes caused about $160 million in economic losses in New Zealand over the past year. Among those losses, around $19 million came from Romance and Trust Scams, a category of fraud built around creating personal relationships and trust before extracting money from victims.
Community Trust Networks Used to Spread False Investments
According to the report, local Pacific communities are gradually becoming a key target for cryptocurrency scam activity. Fraudsters are said to exploit the strong cohesion within these communities, as well as extensive family, church and social relationship networks, to circulate false investment projects through existing trust channels.
The report said these internal trust mechanisms can help expand the reach of scams once a fraudulent project enters a community network. Rather than relying only on anonymous online promotion, the schemes described in the report use familiar relationships and social credibility to increase their influence.
B2B News also noted the significant economic influence of Pacific communities in New Zealand. Historical data cited in the report shows that the group once contributed about $4.8 billion in gross domestic product to the local economy. Related church organizations also manage assets of more than $300 million, factors that the report said have drawn attention from scam groups.
FMA Warning Named BG Wealth Sharing
In February this year, the New Zealand Financial Markets Authority, together with several international regulators, issued a risk warning about BG Wealth Sharing, an unregistered crypto investment project. The warning reminded the public to be alert to related scam activity and to treat unregistered crypto investment offerings with caution.
As crypto asset investment becomes more widespread, regulators in multiple countries have continued to strengthen action against false investment platforms and cross-border scam networks. They have also reminded investors to verify platform qualifications and regulatory information before taking part in high-yield projects. The latest report places New Zealand’s overall fraud losses, Romance and Trust Scam losses, and crypto fraud risks facing Pacific communities within the same broader picture.