New Zealanders have lost nearly $200 million to scams over the past year, with the average victim losing around $3,100.1 In 2024 alone, nearly 13,000 fake investment platform domains were detected and blocked across more than 7,000 IP addresses—a 25% increase from the previous year.2 With 56% of Kiwis — around 2.1 million people — now actively investing, this threat is only growing.3
As part of their fraud-fighting initiatives, the forex broker experts at BrokerChooser surveyed a representative panel of 2,000 adults and asked how they would respond in 4 different scam scenarios. Alarmingly, 9 in 10 people (91%) said they would act in a way that could expose them to fraud.
Key findings:
- Nearly one in three (30.95%)respondents lack confidence in spotting investment scams, with 45 to 54-year-olds (38.8%) being the least confident age group
- Young adults (25-34) are most likely to overestimate their confidence in spotting an investment scam, with many still willing to engage with suspicious platforms
- One in six Gen Zs (15.03%) would invest in a suspicious forex opportunity based on celebrity or influencer endorsements, despite how easily these can be faked with AI
- Women are more risk-aware than men, with just 10% saying they’d test a small deposit in a forex opportunity, compared to 17% of men
Shockingly, nine in ten respondents (91%) overall said they would act in a way that could expose them to fraud. Question 4: ”How would you verify the legitimacy of a forex trading opportunity before investing?” had the highest proportion of respondents selecting risky answers, with almost one in four (23.15%) saying that they would ask the broker directly for copies of their licenses and certificates.
This is a risky approach, as it relies entirely on trusting the word of the broker, who may provide forged or misleading documentation. Scammers often exploit this tactic by creating convincing fake credentials to appear legitimate, making direct engagement a potential trap rather than a form of due diligence.
Q1. How confident do you feel in your ability to spot an investment scam?
A table highlighting the survey results can be found here.
Almost two in five 45-54-year-olds lack confidence in their ability to identify an investment scam
New insights from the forex broker experts at BrokerChooser found that one in three (30.95%)people lack confidence in their ability to spot an investment scam. Those aged 45 to 54 (38.8%) report the highest uncertainty, followed by 16 to 24-year-olds (33.72%), making them the demographic most vulnerable to investment fraud.
On the other hand, three in five people feel confident overall in their ability to identify an investment scam (60.20%), yet only 16.8% consider themselves ‘very confident’. This figure plummets to just 8.67% among over-55s, highlighting their risk.
More than three-quarters of young adults feel confident that they could spot an investment scam, but is this ability overestimated? 🤔
Meanwhile, young adults aged 25 to 34 appear to be the most self-assured, with over three-quarters (76.22%) feeling confident, and one in three (32.62%) rating themselves as ‘very confident’. But crucially, are people overestimating their ability to spot investment scams—and leaving themselves more vulnerable as a result?
Q2. You’re contacted by a new forex investment platform offering returns of 15–20% per month. They mention they are ‘pending regulation’ and already have 2,000 investors. What would you do?
Despite being the most confident in their scam-spotting abilities, those aged 25 to 34 were the most likely to turn to friends or family to check if they’ve heard of the platform or knew anyone who had invested (35.67%). This is a form of social proof that scammers often exploit, as friends and family can be just as misled, especially when early returns appear convincing.
This age group was also the most likely to say they’d test the platform with a small amount (28.35%), with almost a third unknowingly exposing themselves to greater risk. A classic scam tactic, scammers often fabricate early successes to lure people into making bigger investments later.
Interestingly, the survey from the forex broker experts at BrokerChooser found that women are more risk-aware than men when it comes to forex opportunities, with just 10% saying they’d test a small deposit in a forex opportunity, compared to 17% of men.
Q3. What would convince you to make an initial small deposit into a new forex trading platform?
Almost one in five (19.96%) Gen Z respondents say they’d be convinced to invest in a new forex platform based on screenshots of profitable trades. This is concerning given that two out of three forex customers typically lose money and the fact that 50% of fraud now involves the use of AI, which can be used to fake images. This tactic continues to sway younger, visually-oriented investors.4,5
Even more concerning, over a third of 25 to 34-year-olds (35.37%) — and nearly a quarter of 35 to 44-year-olds (23.68%)—say they’d trust testimonials from “other successful traders”. This is a fraudulent tactic commonly used in scams through fake or paid endorsements to create a false sense of credibility.
In contrast, baby boomers appear more cautious, with just 6.55% trusting such testimonials, and only 12.66% saying a money-back guarantee would persuade them to invest. While that may sound reassuring, such promises only carry weight if backed by regulation and legal accountability.
