Finance writer Frances Cook on her experience of being deep-faked, and how to spot a scammer.
As someone who’s chronically online, it’s not unusual for me to get a message letting me know that there’s an account pretending to be me, and trying to trick people with it.
But the scammers have really taken it to the next level this time.
A series of videos are circulating, as paid ads, on social media platforms like Facebook and Instagram.
There’s “me”, or at least, a fake version of me, talking to the camera from my home office. Only the movement is slightly stilted, and the voice is a much posher, British accent. (My Mum would be thrilled to hear "me" with such rounded vowels).
This fake-me tells you that I’ll help you pick the next hot stocks, if you join my WhatsApp group, and get messages from “me”. (I don’t use WhatsApp for anything.)
Worse, it appears to come from an ANZ-branded account, using the bank's name and a fake, though quite convincing, approximation of its logo. Although when you click the account, it says it’s a children’s clothing store, the scammer's impersonation of ANZ isn't exactly what you'd call watertight.
It's depressing and exhausting and I dread to think there may be people out there who truly think I’ve scammed them.
How to know if it's really me
For anyone who sees a post from me, and wonders if it’s actually me, here’s the key difference to look for: I will always tell you HOW money works. I will never tell you WHAT, specifically, you should invest into.
Giving a specific fund or stock recommendation is illegal, and for good reason. It should only be done by a financial advisor, one-on-one, after they’ve had a conversation about your financial goals and current situation.
So a specific investment tip floating around on social media? AVOID it, block that account and, if you're feeling civic-minded, report it.
But there are plenty of other, low-level scams, or even just money myths that can seriously hurt you while you’re scrolling.
So here are five other red flags to watch for, to protect your money online.
1. “Here’s what everyone needs to do”
Say it with me now: personal finance is personal.
Different approaches work at different stages of your life, or when you’re chasing a different outcome for your money.
Someone who says “this is the only way, and everyone needs to do it like this” is waving a giant red flag.
Best case scenario, they don’t know as much as they think they do. Worst case, they’re trying to scam you.
Yes, social media rewards tips that can be conveyed within a short, punchy clip. But there are very few tips that are truly universal, especially when it comes to money.
And as I point out above, giving specific investing recommendations is illegal. If your online "advisor" doesn't know that, or doesn't care… either way, that’s a huge red flag.
2. It’s from somewhere else
Sometimes the advice you read is actually true! It’s just not true in New Zealand.
You’ll see claims that you need a credit card to build a credit score, or you’ll ever get anywhere financially.
True… in the US. Not in New Zealand.
Or another common tip is that you can pay your mortgage off faster, simply by changing the frequency of when you make payments.
True… in Australia. Not here.
So check where the person giving the tip is based, then maybe do a quick search to see if their advice still applies here.
3. A sneaky loophole, with millions of views
Quick question: do you reckon police officers and tax agents have TikTok too?
Spoiler alert, they sure do.
So if you spot a viral video claiming you can get around bank rules, or tax, or anything else, there are two likely scenarios: First, it was never true to begin with, but sure delivered a lot of clicks to that social media account. Second, the tip was true, but now millions of people saw it, and the loophole is getting slammed shut, fast.
That’s more or less what happened in Australia, where a scheme spread on TikTok, that showed people how to file a fraudulent GST refund.
More than 57,000 people got caught up in it, with the Australian Tax Office estimating well over $2 billion in bogus refunds were paid out before it was shut down.
Dozens have already been convicted, and more cases are still being processed by the courts.
Let’s not get ourselves arrested, team.
4. “Look how rich I am!”
If there’s one video I will scroll past every time, it’s one that start with “as a self-made millionaire” right before they launch into a sales pitch, disguised as a life tip.
A nice car only proves that person was able to be around the car long enough to take a picture with it. They might have paid for it with debt, or it might not be theirs at all.
Even if they're personally wealthy, that doesn’t mean the strategy they’re selling actually works, or that it’ll work for you.
An experienced financial professional knows enough to know which strategies work for most people, and then how to adapt them to different situations.
That’s far more valuable than someone who has hit it rich and has nothing to share but that singular experience.
One winning investment, a good month, a good business with no context on how they built it or with whose money? Those aren’t proof of a strong financial track record, it’s just one person’s highlight reel.
5. “Take action quick”
Urgency is another dead giveaway that a sales pitch isn’t in your best interests.
A countdown clock, “DM me before spots fill up”, or claims that they usually only share something with their inner circle – these are all red flags. Real financial advice doesn’t come with a timer, and doesn’t make you feel like you’re at risk of missing out.
Is it a real tip, or a sales tactic? If it’s the second, keep scrolling past.
Stay safe out there, the worldwide web is full of spiders.
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