New Zealand’s
Financial Markets Authority (FMA) has issued an alert about an elaborate
investment scam operating through WhatsApp that promises unrealistic returns
while employing sophisticated social engineering tactics to defraud investors.
Recent
survey data from FinanceMagnates.com and FXStreet found that
approximately 60% of traders targeted by scammers on platforms like WhatsApp
and Telegram end up losing money.
The scam,
linked to an entity called “Txex” (also known as Whalefall), operates
through multiple websites and uses WhatsApp groups populated largely with fake,
artificial agents to create the illusion of popularity and legitimacy,
according to the FMA warning.
“We
have identified multiple websites that are part of this scam but believe there
may be more connected as they frequently change,” the FMA commented in the
official press release. “The scammer sets up a series of WhatsApp groups, these
appear popular, but are mostly filled with bots.”
The scheme
operates by establishing WhatsApp groups led by self-described mentors,
coaches, or crypto advisers who promise 100% returns through “trading
signals” shared throughout the day. Users are encouraged to recruit others
with rewards, while fraudulent leaderboards display supposed top performers
receiving luxury prizes.
Trail of Empty Wallets
Across New Zealand
Victims are
directed to open cryptocurrency exchange accounts, deposit funds, and then
transfer their cryptocurrency to what scammers describe as a “trading
account.” While initial small trades may appear successful to build
confidence, attempts to withdraw funds are met with demands for substantial
fees, which are never returned even if paid.
The FMA has
identified over 30 websites connected to the operation, including variations of
txex.com with different domain extensions, and warned that new sites are
frequently created as others are reported.
Txex website
The FMA
advises anyone who believes they’ve encountered the scam to immediately cease
contact with the operators, report the group to WhatsApp, and block the
scammers on all devices. Victims are also encouraged to report spam messages to
New Zealand’s Department of Internal Affairs and seek support from trusted
friends, relatives, or Victim Support services.
Two months ago, the regulator also identified almost 100 fraudulent trading platforms, including clones of the popular brands like SAXO, IG and ATFX.
The WhatsApp Trap
David Harvie, Saxo Australia’s Head of Direct Sales
This
warning comes amid growing concerns about financial scams spreading across
messaging platforms. FinanceMagnates.com conducted
a survey last year in collaboration with FxStreet, which revealed
that WhatsApp, along with Telegram, is among the most common social media
platforms where investors are scammed and lose money.
“I would
encourage any trader not to rely solely on a social media post or a
conversation with a potential provider, but instead to insist on reviewing the
documentation that supports their claims,” David Harvie, Head of Direct Sales
at Saxo Australia, told Finance Magnates. “You also have the opportunity to
check your jurisdiction’s regulatory website to confirm whether your broker is
properly licensed.”
Other
regulators have also recently warned about scams on WhatsApp, including
Consob, which identified the app as one of the most popular current
channels for investment fraud. In late 2024, Australia’s
ASIC issued a separate alert, highlighting the rise in WhatsApp groups
promoting alleged investment opportunities with potentially high returns.
New Zealand’s
Financial Markets Authority (FMA) has issued an alert about an elaborate
investment scam operating through WhatsApp that promises unrealistic returns
while employing sophisticated social engineering tactics to defraud investors.
Recent
survey data from FinanceMagnates.com and FXStreet found that
approximately 60% of traders targeted by scammers on platforms like WhatsApp
and Telegram end up losing money.
The scam,
linked to an entity called “Txex” (also known as Whalefall), operates
through multiple websites and uses WhatsApp groups populated largely with fake,
artificial agents to create the illusion of popularity and legitimacy,
according to the FMA warning.
“We
have identified multiple websites that are part of this scam but believe there
may be more connected as they frequently change,” the FMA commented in the
official press release. “The scammer sets up a series of WhatsApp groups, these
appear popular, but are mostly filled with bots.”
The scheme
operates by establishing WhatsApp groups led by self-described mentors,
coaches, or crypto advisers who promise 100% returns through “trading
signals” shared throughout the day. Users are encouraged to recruit others
with rewards, while fraudulent leaderboards display supposed top performers
receiving luxury prizes.
Trail of Empty Wallets
Across New Zealand
Victims are
directed to open cryptocurrency exchange accounts, deposit funds, and then
transfer their cryptocurrency to what scammers describe as a “trading
account.” While initial small trades may appear successful to build
confidence, attempts to withdraw funds are met with demands for substantial
fees, which are never returned even if paid.
The FMA has
identified over 30 websites connected to the operation, including variations of
txex.com with different domain extensions, and warned that new sites are
frequently created as others are reported.
Txex website
The FMA
advises anyone who believes they’ve encountered the scam to immediately cease
contact with the operators, report the group to WhatsApp, and block the
scammers on all devices. Victims are also encouraged to report spam messages to
New Zealand’s Department of Internal Affairs and seek support from trusted
friends, relatives, or Victim Support services.
Two months ago, the regulator also identified almost 100 fraudulent trading platforms, including clones of the popular brands like SAXO, IG and ATFX.
The WhatsApp Trap
David Harvie, Saxo Australia’s Head of Direct Sales
This
warning comes amid growing concerns about financial scams spreading across
messaging platforms. FinanceMagnates.com conducted
a survey last year in collaboration with FxStreet, which revealed
that WhatsApp, along with Telegram, is among the most common social media
platforms where investors are scammed and lose money.
“I would
encourage any trader not to rely solely on a social media post or a
conversation with a potential provider, but instead to insist on reviewing the
documentation that supports their claims,” David Harvie, Head of Direct Sales
at Saxo Australia, told Finance Magnates. “You also have the opportunity to
check your jurisdiction’s regulatory website to confirm whether your broker is
properly licensed.”
Other
regulators have also recently warned about scams on WhatsApp, including
Consob, which identified the app as one of the most popular current
channels for investment fraud. In late 2024, Australia’s
ASIC issued a separate alert, highlighting the rise in WhatsApp groups
promoting alleged investment opportunities with potentially high returns.
