New Zealand Police Releases Public Warning Against Bitcoin Investment Fraud

New Zealand’s police have sent a warning to the public urging them to be on the guard of online investments plots offering higher profits with investments in cryptocurrencies such as bitcoin.

A warning was sent by police in the region of Canterbury in New Zealand on the department’s website on Wednesday, urging residents to be vigilant of crypto-investment plots following an incident which saw a victim losing NZD$320,000 (about $212,500) to an online fraud.

Even though the police did not give full details of the scam and its operators, “[t]he scams involved investments in cryptocurrencies, such as bitcoin,” according to the notice. To get investment from its victims, the company offered attractive returns in exchange for a small investment.

“The investment grew as more money was deposited, but soon began to decline,” police added. The event went on with the fraudster contacting the victim more than once to get additional investments that were made on the plot’s website.

Urging the public to be mindful of investment plots offering heightened profits on investments, Senior Sergeant Paul Reeves noted:

“Members of the public should seek advice before making any online investments they are unsure of. Scammers are extremely persistent and can seem very credible, as they are highly versed in their trade. “

The warning also conveyed residents to a crypto advisory, by CERT New Zealand, the country’s cybersecurity regulator. Giving a brief explanation of the advantages and challenges in cryptocurrency investments, the advisory hints cryptocurrency adopters to store their coins in offline storage to cut down on hacking risks.

From the look of things, the cryptocurrency industry is to a large extent without regulations in New Zealand.