24 March 2026

IPO scam

We’ve launched a series called Inside a Scam to help Kiwis better understand investment scams.

The series unpacks how different scams work, how to recognise the warning signs, how to protect yourself, what to do if you’ve been scammed, and how to support a victim.

Our second video focuses on IPO scams.

Learn how IPO scams work, how to spot the warning signs, and what to do if it happens to you.

What is an IPO scam?

An IPO (initial public offering) scam is when someone offers “IPO” or “pre-IPO” shares that don’t exist or aren’t available to the public.

Scammers promote these fake investments through social media, online ads, messaging apps, emails, cold calls, or fake websites. They often impersonate licensed brokers or well-known companies and use professional looking websites and documents to appear legitimate.

Scammers also take advantage of online rumours about potential IPOs. Because genuine IPO plans can change, be delayed, or never happen, they rely on this uncertainty to make their pitch sound believable. IPO scams can run for months or even years. Scammers often reinvent their company name, website, or branding to avoid being detected.

They promise early or exclusive access to discounted shares in well-known or fast-growing companies, but the investment is fake and your money is lost.

Anyone can be targeted. Knowing the warning signs can help protect you and those around you.

How to spot an IPO scam?

Red Flags

🚩Unexpected contact

You’re approached out of the blue about an IPO or pre-IPO opportunity.

🚩Moving the conversation off‑platform

They ask to chat on messaging platforms like WhatsApp or Telegram to avoid detection.

🚩Pressure and urgency

You’re encouraged to act now as the offer is closing soon or that spots are limited.

🚩Professional looking but inconsistent

Websites, documents or share agreements look polished, but contain errors or details don’t match official company information.

🚩Too good to be true promises

They claim the IPO is guaranteed or will deliver high returns. No legitimate investment is guaranteed.

🚩Suspicious payment requests

You’re asked to send money to an overseas account, a personal account, or via cryptocurrency. You could be asked to provide specific unrelated references or provide fake information to payment provider to process easily.

🚩Unfamiliar apps or platforms

You’re asked to download or use unknown trading apps or platforms showing fake profits.

🚩The story keeps changing

Company names, contact persons, websites or IPO dates change when you ask questions.

How to protect yourself

✅Take your time

Scammers rely on urgency. Pause, ask questions, and verify details independently.

✅Be cautious of unsolicited offers

Especially investment opportunities that come through social media, messaging apps, or cold calls.

✅Check who you’re dealing with

Verify the company and individual using official sources. Don’t rely on documents or links they provide. Use official company registers and authorised entities lists to confirm the entity is real. If they claim to be based in New Zealand, make sure they are registered on the Financial Service Providers Register. Being on the FSPR helps confirm whether a person or company is registered to provide financial services in New Zealand and if they’re not listed, that’s a strong warning sign of a scam.

✅Be alert to impersonation

Scammers may impersonate real companies or brokers. If something doesn’t add up, stop and check. Do your own research: Search online for information, including reviews, warnings, or complaints, and use official contact details from company websites or registers to verify the entity directly.

✅Confirm the IPO independently

Check the IPO is actually happening on the company’s own website or trusted news sources.

✅Watch for warnings

Check the FMA’s Warnings and Alerts list to see if the company, broker, or platform has been flagged.

✅Protect your personal information

Don’t share personal or financial details unless you’ve verified who you’re dealing with.

✅Block and disconnect

If you suspect an IPO scam, stop all communication and block the scammers.

If you think you’ve been scammed

Scams can happen to anyone. Acting quickly can help reduce further harm.

Contact your bank or payment provider immediately to report the scam and request a transaction reversal.
Contact IDCARE for support and guidance if personal details were shared (0800 121 068 or online at www.idcare.org)
Report investment scams to the FMA.
Report fraudulent accounts to platforms used by the scammer.
Talk to someone you trust or contact Victim Support (0800 842 846).