Tongan and New Zealand financial authorities are collaborating to halt a high-risk investment scam that is rapidly spreading among Tongan communities across multiple countries.
According to a report by 1News, the scheme, known as BG Wealth/DSJ Exchange, is being described as a Ponzi operation that promises unrealistic financial returns while targeting individuals through social networks and messaging platforms.
The National Reserve Bank of Tonga has issued a public warning and is collaborating with New Zealand’s Financial Markets Authority (FMA) after concerns that the scam has reached Tongans living in New Zealand. Officials say the partnership aims to strengthen monitoring efforts and prevent more people from falling victim, 1News has reported.
FMA’s executive director of licensing and conduct supervision Clare Bolingford said cooperation between authorities is essential to curb the scam’s growth.
“Given what we've seen with this scam in particular we really want to present a joint and united front to the Tongan people, to the Tongan community here in New Zealand, to show that we're working together,” she said, as quoted by 1News.
Since April last year, the FMA has removed more than 800 websites connected to the fraudulent operation. However, officials say the scammers continue to create new online platforms using slightly different content and identities to appear legitimate.
“They keep creating new websites and it has similar information but not always the same information,” Bolingford said. “It might use different pictures, it might use different people who are saying there are these great investment advisers, that they can mentor people on this platform,” 1News has quoted.
The scam typically operates through messaging apps such as Viber and WhatsApp, with participants promoting it on Facebook to attract friends and family members. Reports indicate the scheme has spread from Tongan communities in the United States to Tonga and now to New Zealand.
Victims are instructed to open cryptocurrency exchange accounts and transfer funds into what appears to be a trading platform on a fake application. Initially, users may be allowed to make small withdrawals to build trust. Later, they are told to pay large fees to release their funds, after which they lose access to their accounts entirely.
Community members in Auckland are now speaking out to warn others. Tioly Fatukala, who has previously exposed scams affecting Tongans, said many cases remain hidden.
“People are just not aware that it's happening, families are doing it quietly,” 1News has quoted.
Fatukala said speaking publicly has also led to backlash from individuals involved in the scheme.
“I’ve got one lady in Tonga swearing and cussing at me to shut up and not say anything,” she said, 1News has quoted.
Tonga’s Prime Minister Lord Fakafanua has also expressed concern about the situation, warning that members of the community are being exploited.
He said Tongans were being “scammed by these very, very bad people,” as reported by 1News.
Authorities are urging people to remain cautious and avoid investment opportunities that promise unusually high returns, reminding the public that if something sounds too good to be true, it likely is.