NZ FMA Reveals SmartFactoryFX Scheme: Facebook "Friend" Requests Used for Recruitment, "Trading Mentor" Facilitates Investment

The Financial Markets Authority of New Zealand (NZ FMA) has issued a warning regarding SmartFactoryFX/Doc Trading, an entity suspected of operating a fraudulent investment scheme via the website SmartFactoryFX.com. The FMA has learned that victims were introduced to the entity and directed to a supposed “trading mentor” on Facebook after receiving an unsolicited friend request.

The regulator urges investors to exercise caution when dealing with SmartFactoryFX.com, as it is aware of investors who were unable to withdraw their funds paid to SmartFactoryFX.

In the scheme, individuals receive a friend request through Facebook, and they notice a number of mutual Facebook friends, which leads them to readily accept the request. This “friend” then makes contact and starts chatting. This may continue over a number of weeks or months, building up trust.  

This friend then shares stories of apparent investing success, saying they had used a “trading mentor” and an online platform such as SmartFactoryFX.  Victims become curious and decide to also invest.  

Victims are introduced online to the “trading mentor,” who says they will help set up a trading account and invest money. A few trades may then proceed, which can lead the victim to believe the platform is legitimate. They often see inflated profits being made and are encouraged to keep investing more. This is all supported by the original “friend.”  

They then try to make a withdrawal but are told they must pay some type of fee to get their money out. But even if this money is paid, no money is ever released. If victims share dissatisfaction with their “friend,” they are encouraged to simply pay the fees, with the friend saying they had gotten their money back after paying up. This so-called friend has been collaborating with the scammers since the beginning.