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Don't get caught out by a share scam

In conjunction with the Financial Markets Authority (FMA) we have put together a few details for you when you enter an investment.

New Zealanders have lost millions of dollars over the phone to international share scams.

These con-men are persuasive. And persistent.

Typically they say that a company is poised to make an exciting breakthrough with new technology or a medical discovery. Its shares are listed on an American stock exchange but the company is little known and the shares are very cheap. Buy now, before the breakthrough announcement, and you'll make a huge return.

The callers are persistent, often calling back many times. They may become abusive if you try to fob them off.

They target people throughout the country, particularly small business owners.

Many people have fallen victim to these bogus share deals. After they send the money they find that either no shares are bought, or that the shares are worthless and can't be sold. The "broker" then becomes difficult if not impossible to contact.

Visit Financial Markets Website Authority for further information: Financial Markets Authority New Zealand.