Why Scam Financial Advertising Needs Stronger, Faster Regulation
The digital economy has transformed financial services — and with it, opened the door to a new breed of financial scams exploiting the speed, scale, and targeting power of online platforms. These scams increasingly mimic legitimate advertising, copy trusted brands, and use sophisticated behavioural tactics to capture consumers before regulators or platforms can react.
The result is predictable: people lose money, trust in digital advertising erodes, and responsible financial advertisers are left competing in an environment polluted by actors who face virtually no consequences.
New Zealand is far from alone, but the gap between the scale of the problem and the strength of our current response is widening fast. We need sharper tools, faster intervention, and stronger accountability.
Scam Ads Aren’t “Content” — They’re Fraud Disguised as Advertising
Scammers understand the power of advertising. They mimic the look and feel of trusted brands, use deepfake endorsements from public figures, and deploy geotargeted campaigns that follow consumers across platforms. These are not organic posts or rogue blogs — they are paid, deliberate attempts to deceive.
Treating scam ads as merely “misleading content” under general advertising rules underestimates the harm. These are financial crimes facilitated through channels that consumers assume to be safe and screened.
The Current System Is Too Slow for the Problem We Face
Regulatory takedown processes are designed for traditional advertising disputes, not high-velocity fraud. A scam ad can reach thousands of New Zealanders in hours, yet removal can take days — sometimes longer if the advertiser is offshore, anonymous, or both.
Meanwhile, platforms vary widely in how quickly they act, what evidence they require, and how transparently they report action. There is no consistent standard, no statutory timeframe, and little deterrent. Scammers simply resurface with new domains, new pages, and new creative within hours.
This asymmetry benefits only the bad actors.
Three Areas Where New Zealand Needs Stronger Regulation
1. Mandatory, Rapid Takedown Standards for Platforms
Platforms should be required to remove verified scam ads within a strict timeframe — measured in hours, not days. Australia and the UK are already tightening requirements, and New Zealand risks falling behind. A regulated duty to act would create consistency, accountability, and transparency.
2. Verification and Identity Requirements for High-Risk Categories
For financial advertising, particularly investment and credit promotions, platforms should require advertisers to prove they are legitimate entities. This could include NZBN verification, proof of licensing (where relevant), and verified payment methods. Anonymous or unlicensed advertisers should not be able to reach New Zealand consumers with financial offers.
3. A Central Coordination Point for Scam Reporting and Enforcement
Consumers currently navigate a maze: CERT NZ, the FMA, Netsafe, the Police, and the platforms themselves. A single reporting mechanism — linked to a coordinated government response — would speed up takedowns, reduce duplication, and improve detection of repeat offenders.
The Cost of Inaction
When consumers see yet another fake investment ad with a politician’s face on it, the damage extends beyond the individual victim. It undermines trust in digital advertising, in financial services, and in the wider information ecosystem. That loss of confidence eventually flows back to advertisers, agencies, and legitimate platforms.
Responsible industry players are already doing more. But voluntary systems are not enough to match the pace and sophistication of scams.
Where ANZA Stands
ANZA supports a modernised regulatory framework that recognises scam financial advertising for what it is: fraud, not marketing. New Zealand needs faster takedown obligations, identity verification for high-risk advertisers, and coordinated enforcement that matches the speed of digital deception.
Protecting consumers protects the credibility of the entire advertising industry. Stronger action on scam ads isn’t just good regulation — it’s a critical investment in the integrity of New Zealand’s digital marketplace.