12 June 2005
News release
Overseas Share Scams Campaign
The Securities Commission today began a campaign to alert New Zealanders to share scams promoted by people who telephone
from overseas.
A new website – www.sharescams.org.nz – explains how these international fraudsters con New Zealanders into buying or
selling shares in little known overseas companies. If shares are bought they turn out to be worthless and people lose
their money.
Advertising in the Sunday papers today encourages people to “slam the phone” on these unsolicited callers and alerts
them to the new website.
“These fraudsters keep changing their names and the countries they operate from,” says Director of Enforcement, Norman
Miller. “This helps them avoid detection while they keep the money rolling in.”
They also change tactics. Recently many people who have already lost money on worthless shares are contacted again –
this time by an apparently new “broker” who has a buyer for the shares. Of course, more money must be sent first, and
this too is lost.
“We estimate at least $30 million has been lost by people who have told us their experiences,” Mr Miller says. “We know
that this must be the tip of the iceberg.”
Small business people are particularly at risk as the fraudsters deliberately target them with their clever and
persuasive patter.
Hang up on these callers is the best advice. Talking to them gives them more opportunity to persuade you to send money.
“It is extremely unwise to send money overseas to someone you know only by a telephone call. Money sent out of the
country to these fraudsters will inevitably be lost,” Mr Miller says.
ENDS