Recovery-Room and Fake-Adviser Scams in NZ: How Investors Get Targeted Twice

Clone firms, impersonated advisers and fake fund-recovery services explained: how NZ scam victims get targeted a second time, the warning signs, and how to verify before you trust anyone.

TL;DR: A recovery-room scam targets people who have already lost money, promising to get it back for an upfront fee, then taking more. New Zealanders lost a gross $265 million to fraud in the year to 30 September 2025 ¹, and the same people are often approached again. The defence is simple: verify the firm yourself on the FSPR, and never pay an upfront recovery fee.

This article is general information only and is not personalised financial advice. It does not take into account your particular financial situation, goals or needs. Before acting, consider whether it's right for you and seek advice tailored to your circumstances.

Scams in New Zealand are not only widespread but increasingly deceptive ⁷. Over the 12 months to 30 September 2025, the first Reported Fraud Monitor compiled from 12 banks put gross losses at $265 million ¹. What is less well understood is that losing money once often makes a person a target a second time. The contact details, the story and the willingness to act are already known to criminals, and a new approach arrives dressed up as help.

This guide explains how recovery-room and impersonation scams work, why victims get hit twice, the warning signs, and the verification steps that stop both.

What is a recovery-room scam and why are scam victims targeted twice?

A recovery-room scam targets people who have already lost money to an earlier fraud. The operator makes contact claiming they can recover the lost funds, sometimes posing as a government agency, a regulator, a law firm or a "fund recovery" specialist, and then demands an upfront fee, a "tax", or bank details to "process the refund" ³. No money comes back. The fee, and often more, is simply lost again.

The reason victims are approached twice comes down to how the first loss happened. Of the $265 million reported, about $126 million involved authorised payments, where the victim was tricked into approving the transaction themselves, while about $139 million came from unauthorised access to accounts ². People who paid willingly the first time are seen as a softer target, because they engaged with the original scammer and may be anxious to recover their money.

The category data points the same way. The three largest scam types were compromised-credentials scams (about $84 million), products-and-services scams (about $76 million) and relationship-and-trust scams (about $31 million), together nearly three-quarters of all losses ⁸. Relationship and trust scams in particular leave people emotionally invested, which recovery operators exploit. In some cases the people running the "recovery" service are connected to the original scam, working from the same contact lists.

What are clone-firm and fake-adviser (impersonation) scams?

A clone firm copies the name, branding and sometimes the registration details of a real, licensed New Zealand business, then uses that cover to look legitimate. A fake-adviser or impersonation scam does the same with an individual, using a genuine adviser's name, photo or credentials to win trust.

These are common feeders into recovery-room scams, because both rely on appearing official. The FMA has specifically warned about fake platforms impersonating legitimate NZ investment services, including Sharesies, InvestNow and Fisher Funds, as well as AI deepfake impersonations of New Zealand politicians and business leaders ⁵. The FMA issued more than 50 investment scam warning notices in 2025, the highest annual total on record ⁵.

Common forms include:

• Clone of a licensed firm. A website or document that mirrors a real provider, often with a slightly different web address or a name with a small variation ⁴.
• Impersonated adviser. A real adviser's name and FSP number used by someone who is not that person, frequently over phone, email or social media.
• Fake recovery service. An operator posing as an agency or regulator offering to recover earlier losses for a fee ³.
• Fake platform or app. A trading or "portfolio" site that shows fake gains to encourage more deposits before the money disappears.

How do scammers misuse real NZ firm names and FSP numbers?

Every genuine financial adviser and firm in New Zealand must be listed on the Financial Service Providers Register (FSPR), and each carries an FSP number ⁶. Because that information is public, scammers copy it. They quote a real firm's FSP number, or one a digit off, so that a quick search appears to confirm them. The number is real; the person using it is not.

The FMA advises checking for warnings about similar-sounding names, because clone firms often use slight variations of legitimate NZ firm names ⁴. A common giveaway is the contact channel: the scammer supplies a phone number, email or link, and discourages you from looking the firm up independently. The whole tactic depends on you trusting the details they give you rather than the details on the public record.

This is why simply seeing a familiar name or a valid-looking FSP number is not enough. The number tells you a real firm exists. It does not tell you that the person contacting you is from that firm.

What are the warning signs you are dealing with an impersonator?

No single sign is proof on its own, but several together are a strong reason to stop. Watch for:

• They contacted you out of the blue about an investment, a refund or recovering a past loss.
• You are asked to pay an upfront fee to release, recover or "unlock" money. Legitimate recovery does not work this way ³.
• Pressure and urgency, a deadline, or a warning that you will miss out if you do not act now.
• They give you the contact details and steer you away from looking the firm up yourself.
• Requests for bank logins, card details, or remote access to your device or accounts.
• Returns described as guaranteed, risk-free or unusually high, which no genuine investment offers.
• Payment by cryptocurrency, gift cards or to a personal account, which are hard to reverse or trace.
• Small mismatches, a web address one letter off, a slightly different company name, or an adviser whose details do not match the register.

If a recovery service contacts you specifically about an earlier loss and asks for money to get it back, treat that as a scam unless proven otherwise ³.

How do you verify an adviser or firm is genuinely who they say?

The FMA's standing advice is to verify a firm independently rather than using the contact details it supplies ⁶. The steps below are the core defence against both clone-firm and recovery-room scams.

The single most reliable move is step two: stop, find the firm's number yourself, and call back on that line. A scammer can copy a website, a logo and a registration number, but cannot pick up the real firm's published phone.

For more on what genuine advisers disclose, see the questions to ask a financial adviser about disclosure and our guide on how to choose a financial adviser in NZ.

What should you do if you've been approached by a 'recovery' service?

If someone contacts you offering to recover money you lost earlier, the safest assumption is that it is a continuation of the scam ³. Practical steps:

1. Do not pay anything. No upfront fee, "tax", or "release" payment is required to recover legitimately held funds.

2. Do not share bank logins, card numbers, or remote access to your device.

3. Stop and verify. If they claim to be an agency or a firm, look that body up independently and contact it on its own published channel.

4. Tell your bank straight away if you have paid or shared details, so they can act on the account.

5. Keep records. Save messages, numbers, emails and payment details for any report you make.

Scams of this kind tend to escalate. The same data showing how people are first defrauded ²⁸ is the reason a second, more targeted approach so often follows.

How to report impersonation and protect others

Reporting matters because it adds to the warning record others rely on. The FMA maintains a public Warnings and Alerts list that names businesses and individuals to be wary of, including impersonation, clone-firm and recovery scams ³⁴. If you have been approached:

• Report to the FMA so the firm or individual can be assessed and, if warranted, added to the public warnings list ³.
• Report to Netsafe, New Zealand's independent online-safety non-profit and a primary channel for reporting scams and getting help ⁹.
• Tell your bank, which can help with the money side and flag the account.
• Warn people close to you, especially anyone who may have lost money before, since they are the likely next target.

You can check whether a firm or individual has already been flagged on the FMA Warnings and Alerts library before you engage with anyone new ⁴.

How a legitimate NZ firm will never contact or charge you

A genuine, licensed New Zealand firm behaves in predictable ways, and knowing them makes an impostor easier to spot:

• It will never charge an upfront fee to "recover" money you lost to a scam ³.
• It will be happy for you to verify it on the FSPR and to call back on its published number ⁶.
• It will give its FSP number readily, name its licence, and name its dispute resolution scheme.
• It will not pressure you to act immediately or pay by crypto, gift card or to a personal account.
• It will not ask for your bank logins or remote access to your device.

Smiths Financial is a trading name of Craig Smith Business Services Ltd, FSP712931. You can look us up on the FSPR and call us on our publicly listed number to confirm you are speaking with us. If you are weighing up whether an adviser is independent and genuine, our guide on independent vs tied advisers and our overview of investment-scam red flags are good next reads.

Frequently asked questions

What is a recovery-room scam? It is a scam that targets people who have already lost money to fraud. The operator promises to recover the lost funds, often posing as an agency or regulator, then asks for an upfront fee or bank details and takes more money. No funds are recovered ³.

Why do scammers target the same victim twice? Because the first loss makes a person a known, softer target. Their contact details and circumstances are already known, and someone who paid willingly once may be anxious to recover the money. Much of New Zealand's reported fraud involved victims approving payments themselves ², which recovery operators exploit.

How can I tell a clone firm from the real one? Do not rely on the name or FSP number you are shown, since both can be copied. Look the firm up independently on the FSPR, watch for similar-sounding names, and call the firm on the number listed on its own website or the register rather than one you were given ⁴⁶.

Should I ever pay a fee to recover scammed money? Treat any request to pay an upfront fee to recover lost money as a scam. Legitimate recovery does not require you to pay in advance to "release" your funds ³. Speak to your bank and report it.

Where do I report a fake adviser or recovery scam in NZ? Report it to the FMA, which maintains the public Warnings and Alerts list, and to Netsafe, New Zealand's online-safety non-profit ³⁴⁹. Tell your bank if you have paid money or shared details.

How do I check an FMA licence or warning? Search the Financial Service Providers Register at fsp-register.companiesoffice.govt.nz to confirm a firm's registration ⁶, and search the FMA Warnings and Alerts library to see whether a name has been flagged ⁴.

This article is general information only and is not personalised financial advice. It does not take into account your particular financial situation, goals or needs. Before acting, consider whether it's right for you and seek advice tailored to your circumstances. Smiths Financial is a trading name of Craig Smith Business Services Ltd (FSP712931), which holds a Class 2 financial advice provider licence issued by the Financial Markets Authority. Craig Smith Business Services Ltd is a member of the Financial Dispute Resolution Service (FDRS), a free and independent dispute resolution scheme. Our publicly available disclosure information is available free of charge on request and on the FMA Financial Service Providers Register at fsp-register.companiesoffice.govt.nz. Written by Henry Smith, Financial Adviser; reviewed by Craig Smith, Principal Adviser. Last reviewed 11 June 2026.