Scam using Westpac, SBS Bank brands to target would-be investors

Monday, 16 January 2023

Would-be investors are being warned of a scam targeting social media users with fake investment opportunities from big banks.

The Financial Markets Authority (FMA) confirmed it has received complaints about a company calling itself Magnitude Financial.

A spokesperson said the authority was making enquiries into the company and considering what action to take.

“Providers of a financial service in New Zealand are generally required to be publicly registered on the Financial Service Providers Register (FSPR) and we note Magnitude Financial is not registered.”

**READ MORE:

* Caravan scam - Minutes after deposit paid, profiles disappear and seller is gone

* Woman involved in scam $400K GoFundMe campaign jailed

* The fall of Richard Rufus: Former EPL defender jailed for one of worst Ponzi scams ever seen

**

Magnitude Financial used social media advertisements to draw in potential victims and claimed to offer stockbroking, wealth management and fixed interest investments, including some purportedly provided by SBS Bank and Westpac.

However, both banks said they had no association with the company.

An SBS Bank spokesperson said it was “in no way associated with this company, individual or the marketing communication provided”.

”We can confirm that the information contained in the material relates to a product that is offered on the wholesale market and can currently be traded between wholesale investors on the secondary market only. The product is not available to retail investors.”

Westpac New Zealand said the product being offered under its banner by Magnitude Financial was not legitimate.

”We are making further enquiries about the use of the Westpac name and logo,” a spokesperson said.

”We urge anyone being offered a Westpac financial product by a third-party to check with us before investing.”