To report a Facebook lender scam, immediately file an official complaint with Cert NZ and the Commerce Commission (ComCom) to document the illegal activity. Capture screenshots of all conversations and transaction receipts as evidence, block the lender on social media, and contact your bank to halt any pending payments or revoke direct debit authority.

Falling victim to a predatory lender or an advance-fee loan scam on social media is a stressful experience, but taking immediate, decisive action can mitigate the damage. Unregistered lenders operating on platforms like Facebook often bypass legal regulations, targeting vulnerable individuals with promises of fast cash.

This guide provides a comprehensive, professional pathway for New Zealanders to report these scams, secure their finances, and understand the legal protections available against predatory lending.

Step-by-Step: How to Report Facebook Lender Scams

When you identify a fraudulent lender or a loan shark operating illegally on Facebook, reporting them is not just about personal recovery—it is a civic duty that helps prevent others from falling into the same trap. In New Zealand, there is a specific ecosystem of agencies designed to handle these complaints.

1. Filing a Report with Cert NZ

Cert NZ is the primary government agency for cyber security incidents. Even if the interaction started as a loan agreement, if it involves online fraud (such as asking for an upfront fee and then disappearing), it falls under their jurisdiction.

The Process:

• Navigate to the Cert NZ website and select “Report an issue.”
• Choose “Scams and Fraud” as the category.
• Provide detailed information about the Facebook profile, page, or group where the lender operates.
• Upload any screenshots or evidence you have gathered.

Cert NZ analyzes these reports to issue alerts to the public and can often assist in taking down malicious websites or coordinating with international partners if the scammer is overseas.

2. Lodging a Complaint with the Commerce Commission (ComCom)

The Commerce Commission enforces the Credit Contracts and Consumer Finance Act (CCCFA). If a lender is offering loans without being registered, charging unreasonable fees, or misleading you about interest rates, this is a regulatory breach.

Why this matters: Facebook lenders are often “loan sharks” operating outside the law. By reporting them to ComCom, you alert the regulator to unregistered entities targeting vulnerable consumers. While ComCom may not resolve individual disputes, your report contributes to investigations that can lead to prosecution and shutting down these operations.

3. Reporting Directly to Facebook (Meta)

While often slower than local authorities, reporting the account to Facebook is necessary to deplatform the scammer.

• Go to the lender’s profile or the specific post.
• Click the three dots (…) and select “Find support or report.”
• Select “Fraud or Scam” or “Fake Account.”

Pro Tip: Do not rely solely on Facebook reporting. Scammers often have multiple backup accounts. Official government reports are far more effective for legal recourse.

Gathering Irrefutable Evidence

Before you block the scammer or delete the conversation in frustration, you must gather evidence. Once a scammer realizes you are onto them, they may delete messages or deactivate their account, destroying vital proof needed by the police or your bank.

What to Capture

To build a strong case, ensure you have the following records:

• URL of the Profile: Copy the direct link to their Facebook profile (e.g., facebook.com/username). Changing a display name is easy; changing a URL is harder.
• Screenshots of Conversations: Capture the entire chat history. Ensure dates and times are visible.
• Proof of Payment Requests: Screenshots where they ask for bank transfers, gift cards, or upfront fees.
• Transaction Receipts: If you sent money, export the transaction receipt from your banking app showing the destination account number.
• The “Loan Contract”: If they sent a document, save a copy. Often, these documents are poorly written and legally void, serving as proof of their illegitimacy.

Secure Storage

Save these files to a secure cloud folder (like Google Drive or Dropbox) immediately. If your device is compromised, you will still have access to the evidence from another device.

Protecting Your Bank Account & Identity

If you have engaged with a Facebook lender, your financial security is at risk even if you haven’t transferred money yet. These scammers often harvest personal data to commit identity theft or access your accounts later.

Immediate Banking Actions

Contact your bank’s fraud department immediately. In New Zealand, banks have dedicated teams for fraud and scams. Inform them that you have interacted with a potential scammer.

• Stop Payments: If you have set up a future dated payment or a direct debit, instruct the bank to cancel it immediately.
• Freeze Accounts: If you shared your login credentials or card details, ask the bank to freeze your accounts and issue new cards.
• Flag the Recipient: Provide the scammer’s bank account number to your bank. They can flag this account within the banking system to prevent other customers from sending money to it.

Identity Protection

Did you provide a photo of your driver’s license or passport as part of the “application”? This is a common tactic to steal identities.

• Contact ID Issuer: If you sent a passport photo, contact the Department of Internal Affairs. If it was a driver’s license, contact Waka Kotahi (NZTA). You may need to cancel your current ID and get a replacement to prevent it from being used to open fraudulent accounts in your name.
• Credit Freeze: Consider placing a suppression on your credit file with credit reporting bureaus like Centrix, ilion, and Equifax. This stops anyone from applying for credit in your name.

Understanding the Scam: Red Flags

Knowledge is the best defense. Facebook lender scams generally fall into two categories: the “Advance Fee Fraud” and the “Unregistered Loan Shark.” Understanding the difference helps in reporting them correctly.

The Advance Fee Fraud

In this scenario, the “lender” never intends to give you money. They claim you are approved for a loan (regardless of your credit score) but require an upfront payment for “insurance,” “processing fees,” or “international transfer codes.” Once you pay the fee, they block you.

Red Flags:

• Requests for payment via gift cards or cryptocurrency.
• Poor grammar and spelling in communications.
• Guarantees of approval without a credit check.

The Unregistered Loan Shark

These are actual lenders who give you money but operate illegally. They charge astronomical interest rates (often exceeding the legal cap), demand access to your bank login details, and use harassment or blackmail to collect payments.

Red Flags:

• Operating solely via Facebook Messenger with no physical address or website.
• Not registered on the Financial Service Providers Register (FSPR).
• Threatening to message your Facebook friends or family if you miss a payment.
• Asking for your internet banking password (never share this).

Legal Protections & The CCCFA

New Zealand has robust laws to protect consumers, but these laws rely on enforcement. The Credit Contracts and Consumer Finance Act (CCCFA) sets out strict rules for lenders.

The High-Cost Consumer Credit Contracts Rule

Under the CCCFA, high-cost loans (often called payday loans) have specific restrictions:

• Interest Rate Cap: The total interest and fees cannot exceed 100% of the amount borrowed. If you borrow $500, you should never have to pay back more than $1,000 in total.
• Compound Interest Ban: Lenders cannot charge compound interest on high-cost loans.
• Affordability Checks: Lenders must check that you can afford the loan without suffering substantial hardship. Facebook lenders rarely do this, making the loan illegal.

If a lender has breached these rules, the loan contract may be unenforceable. This means you may not have to pay the interest or fees, only the principal amount borrowed. If you are being harassed by a lender who is breaching these rules, seek help from a budget adviser immediately.

Resources for Recovery

Recovering from a financial scam is not just about the money; it is about rebuilding trust and stability. New Zealand offers several free services to assist victims.

MoneyTalks

MoneyTalks is a free financial mentoring service. They can connect you with a Financial Mentor who can help you negotiate with lenders, organize your debt, and check if you are entitled to any benefits.

Netsafe

Netsafe provides comprehensive advice on online safety. They can guide you on how to secure your social media accounts and deal with online harassment if the lender becomes aggressive.

Community Law Centers

If you are being threatened with legal action by a predatory lender, Community Law Centers offer free legal advice. They can help you draft letters to the lender asserting your rights under the CCCFA.

Victim Support

Being scammed can be traumatic. Victim Support offers 24/7 emotional support for people affected by crime and trauma. Do not underestimate the emotional toll of financial cybercrime; seeking support is a sign of strength.

Frequently Asked Questions

Can I get my money back from a Facebook lender scam?

Recovering money sent to a scammer is difficult, especially if sent via cryptocurrency or wire transfer. However, if you paid via credit card or bank transfer, contact your bank immediately to request a chargeback or a recall of funds. The sooner you act, the higher the chance of recovery.

Is it illegal to lend money on Facebook in NZ?

It is not illegal to lend money, but it is illegal to carry on the business of lending without being registered on the Financial Service Providers Register (FSPR). Most Facebook lenders are unregistered and therefore operating illegally. They are also subject to the CCCFA regulations regarding disclosure and interest caps.

What should I do if a lender threatens to post my photos?

This is a form of blackmail and harassment. Do not pay them. Take screenshots of the threats, report the messages to Facebook, and file a report with the Police and Netsafe. Adjust your Facebook privacy settings to “Friends Only” or “Private” to limit their ability to contact your network.

How do I check if a lender is legitimate?

Before borrowing, search for the lender’s name on the Financial Service Providers Register (FSPR) online. If they are not listed, they are likely operating illegally. Legitimate lenders will also have a professional website, a physical address, and a formal dispute resolution scheme.

Can a Facebook lender take me to court?

It is highly unlikely. Because most Facebook lenders operate illegally (unregistered and breaching CCCFA rules), taking a borrower to court would expose their own illegal activities. They rely on fear and intimidation rather than the legal system.

What is the maximum interest a lender can charge?

Under the CCCFA, high-cost consumer credit contracts (loans with an interest rate of 50% or more per year) are capped. The total cost of credit (interest plus fees) cannot exceed 100% of the amount borrowed. If you borrow $300, the most you can ever be asked to repay is $600.