Don't get caught out by a share scam

In conjunction with the Securities Commission 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.

Download this useful brochure from the Securities Commission - Don't get sucked in by share scams (PDF 928Kb)

For more information check out the ShareScam website: www.sharescams.org.nz

Another useful resource is SCAMwatch. This is an information service provided by the Ministry of Consumer Affairs to help you avoid being scammed.

Visit the SCAMwatch website