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A father scammed out of $18,000 through an app promising high returns in crypto-currency has still not told his wife he’s been cheated out of their family savings.
The Wellington Uber driver – who wants to be known only as Yogesh – said he had not slept for days and “feels great shame” for losing the money he and his wife had saved for their children’s daycare and school education.
“This has put me into depression and I am so ashamed I still haven’t been able to tell my wife,” Yogesh said.
“She will not be happy at all because the emergency money is for our daycare expenses.”
Yogesh said the “very legitimate-looking” investment offer from an entity calling itself HFSC Trading Experience reached him through the encrypted Telegram messaging platform a few weeks ago.
He says he was eventually guided to transfer money from his savings into his phone’s wallet – and then on to the downloaded app.
After some seemingly successful trades, Yogesh appeared to have increased his savings to nearly $30,000 in the app.
“I had around $29,000 sitting in there – but then I was told to get it out would cost me 30% commission.
“Then they said you can’t withdraw the money until after seven days – then they said it was even more commission.”
Yogesh said he was then told he would also have to pay 30% tax before he could withdraw the money.
“That is when I realised it was a scam. They just kept asking for commission and money. I was never going to be able to get the money.”
Yogesh has informed the police cyber crime unit and reported the scam to the Financial Markets Authority (FMA).
Police confirmed they had received a report of online fraud on August 1 and the report was being assessed.
“I am so ashamed I was drawn into this,” said Yogesh.
He is not alone – nearly $200 million was lost by New Zealanders to scams in 2023, according to the FMA, which regulates New Zealand’s financial markets.
The Ministry of Business, Innovation and Employment (MBIE) warned consumers not to fall victim to investment scams.
MBIE spokesman Ian Caplin said scammers were particularly targeting those with savings or investments, who were looking to earn a little bit more from their money.
Yogesh had told his parents he had been scammed and said they were giving him much-needed support.
He had also contacted those behind Trading Experience and told them: “you have ruined my life”.
“It is a lot of money for me that was going to be for my family and now it is gone.
“They replied, urging me to pay the commission and the tax and I would get the money but I know that won’t happen.”
Yogesh said the app looked professional and he thought it ws legitimate.
Yogesh said he had since spoken to others on the page who had also been scammed – one out of $6000 and one out of $7000.
The next step will be telling his wife.
“When she gets back from India, I will need to tell her. She is not going to be happy about this at all.”
Here’s what the FMA says to do if you’re the victim of a scam:
Stop all contact with the scammer. If they phone, hang up. If they send emails or letters, don’t reply. If you maintain contact they will only try to get more money or information out of you.
Contact your bank immediately. They will have a policy to deal with fraud. If you have sent money through another bank or transfer service, contact the service you used to do that.
Tell family or friends what’s happened. It can be hard to admit that you’ve been tricked and lost money, but scammers rely on this shame and secrecy because it helps them keep scamming others.
Report the investment scam to the FMA
Contact Victim Support via their website or by phoning 0800 842 846. They can provide free emotional and practical support and information.
