The New Zealand FMA issued two encryption fraud warnings on Monday, warning that non-existent fees and unregulated activities may be charged.

It is reported that Krypto Security and Bay Exchange are contacting New Zealand citizens to provide access to cryptocurrency services. However, none of these companies are subject to FMA regulation.

Bay Exchange claims to be an "artificial intelligence software" provided by a London based cryptocurrency exchange for automated decision-making and transaction execution, serving through the bayexchange.com website. However, many New Zealand residents are unable to access their accounts after making a deposit.

FMA stated that Bay Exchange is not registered on the Financial Services Provider Register to provide services in New Zealand.

In addition, Krypto Security claims to help retrieve stolen cryptocurrencies. However, it requires a large commission to be paid.

The fraudster has been contacting the victim via phone and email, attempting to impersonate FMA officials using the @ gmail.com domain address. The FMA reminds the agency to only use the official. govt.nz domain, just like other government agencies in New Zealand. In addition, FMA will not contact consumers to pay commissions or additional fees.