Tongan and New Zealand authorities are teaming up to battle a high-risk scam promising big returns hitting communities in both countries.
BG Wealth/DSJ Exchange is a Ponzi scheme targeting nationalities globally but its rapid spread amongst Tongans is sounding alarm bells.
The National Reserve Bank of Tonga has put out a warning and is partnering up with New Zealand's Financial Markets Authority (FMA) due to concern it's spread to Tongans living here.
FMA's executive director of licensing and conduct supervision Clare Bolingford said working together to share information is important to try and put a lid on the investment scam.
"Given what we've seen with this scam in particular we really want to present a joint and united front to the Tongan people, to the Tongan community here in New Zealand, to show that we're working together," she said.
Since April last year the FMA has taken down more than 800 websites linked to the scam.
"They keep creating new websites and it has similar information but not always the same information," Bolingford said. "It might use different pictures, it might use different people who are saying there are these great investment advisers, that they can mentor people on this platform."
The scam is run on platforms like Viber and WhatsApp and Tongans who have gotten involved with it are promoting it on Facebook in the hopes of luring in friends and family.
1News has been tracking the scam for the last few weeks as it has spread from Tongans living in the US, to the Kingdom and now to New Zealand.
The scam involves victims opening a cryptocurrency exchange account and putting money into it, before being told to transfer their cryptocurrency into a supposed trading account on a fake app.
Recruits are led to believe the app is genuine as they can do some trading and even withdraw small amounts at the beginning. However, when they realise they aren’t getting anything and want their money back, they are told they must pay a hefty fee to get it released.
Even if the fee is paid, they receive nothing and the victim eventually gets locked out of their account.
Several Tongans living in Auckland are cautioning the wider community to avoid it.
Tioly Fatukala, who has exposed scams affecting her community in the past, said because it is all happening via cell phones, "people are just not aware that it's happening, families are doing it quietly".
Like others who have spoken up, Fatukala has been on the receiving end of verbal abuse by those involved.
"I’ve got one lady in Tonga swearing and cussing at me to shut up and not say anything," she said.
Tonga's Prime Minister Lord Fakafanua said he was very concerned that Tongans are involved, and victims were being "scammed by these very, very bad people".
He said the good rule of thumb is if it's too good to be true, it's too good to be true and is most likely a scam.
SHARE ME