Victims Handed Over Wallet Seed Phrases on Fake Crypto Websites as Scammers Posed as Trusted Support Staff
A new crypto scam in New Zealand has cost cryptocurrency holders millions of dollars after fraudsters posed as police detectives and crypto company employees. New Zealand Police said several people have lost their digital assets in recent weeks after trusting fake callers.
The scam begins with a phone call from someone claiming to be a police detective. The caller says personal identity documents were found during a criminal investigation and then starts asking questions about cryptocurrency holdings. The conversation sounds convincing, making many victims believe the call is genuine.
How the Fake Crypto Scam Works
Soon after, another scammer contacts the victim and claims to work for a well-known crypto company. The impostor asks the victim to visit a website that appears to be a legitimate crypto platform. Victims then enter their wallet passwords or seed phrases, giving criminals complete access to their funds.
Detective Inspector Stuart Mills said this type of crypto wallet scam is becoming more common. He reminded the public that New Zealand Police never ask for wallet passwords, PINs, bank card details, or seed phrases during an investigation. He also warned that scammers can copy official phone numbers and email addresses, making fake calls appear real.
Police advised anyone receiving a suspicious call to end it immediately and contact officers through official channels. The National Cyber Security Centre also warned people not to install unknown software or share account details after receiving urgent calls or messages.
Police Warn Against Sharing Wallet Details
Authorities said the scam follows a growing global trend in crypto fraud. Australia recently reported phishing attacks that caused more than $1.47 million in losses within a few days.
India also recorded a case in which a retired accountant lost nearly $2.2 million after investing through a fraudulent crypto trading platform. According to FBI data, cryptocurrency scams caused $11.4 billion in losses across the United States in 2025.
Officials continue to urge crypto holders to protect wallet information and avoid sharing sensitive details with anyone claiming to offer support over the phone.
Disclaimer : Crypto News India does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
