New Zealand police say a fraud scheme targeting cryptocurrency holders has led to losses worth millions, with scammers posing as both police detectives and representatives of crypto companies to gain access to wallets.
How the scam works
According to police, the approach often begins with an unsolicited phone call from someone claiming to be a detective. The caller tells the target that identity documents or other personal information linked to them were found on a person who was recently arrested. The claim is designed to create urgency and build credibility by suggesting an active police investigation.
A second person then enters the conversation, this time pretending to be from the victim’s cryptocurrency company. Police say that fake representative attempts to convince the target to hand over sensitive account information, including passwords or seed phrases. In some cases, victims are directed to a fraudulent website made to look like a legitimate crypto app.
Reported losses reach into the millions
Detective Inspector Stuart Mills said police have received multiple reports from crypto account and wallet holders affected by the scheme. He said the reported losses total in the millions.
The warning highlights a pattern in which scammers combine social engineering with technical tricks, including spoofing contact details so calls or messages appear to come from legitimate sources. Police said the fraud relies on public trust in law enforcement and on victims believing they are responding to an urgent security issue.
Police warning on wallet credentials
Mills said genuine police officers may contact people as part of investigations, but they will not ask for details related to cryptocurrency wallets, bank cards, PINs, passwords, or seed phrases. Police also cautioned that the phone numbers or email addresses shown on a screen cannot be taken at face value, because scammers can fake them.
The advice from authorities is to end any suspicious call and independently verify the contact by reaching police through a known number rather than one provided during the conversation.
Cyber security agency repeats caution
The National Cyber Security Center also urged people to be careful with unexpected urgent calls, particularly those demanding software installation, money transfers, or access to accounts or devices. The police warning fits into that broader guidance, with crypto wallet credentials identified as a key target in this latest wave of fraud.
The case underscores a familiar problem in digital asset crime: attackers do not need to break into a platform if they can persuade users to surrender the information that unlocks their funds. In this instance, New Zealand authorities say the combination of fake investigators, impersonated company staff and spoofed contact details has already cost victims heavily.
Source: Cryptopolitan