Police say they are closing in on a group of people who have scammed thousands of New Zealand businesses out of millons of dollars.
The scheme involved the group cold-calling companies selected through the Yellow Pages and selling advertising in magazines that did not exist, said Detective Ash Johnstone of
Wellington police proceeds of crime department.
"With a valid publication they will, in a lot of cases, not send the invoice until the publication is out," he said.
However, the scammers were sending the invoice immediately after selling the advertising.
"They work on the premise that people won't actually look at the publication."
Johnstone said the scam had been operating for about eight months, during which time more than $2 million had been taken from businesses nationwide.
As well as thousands of smaller businesses, several bigger businesses had been hit too , said Johnstone said.
"We're talking also schools, childcare centres, hospitals, so they just have no scruples as far as that's concerned."
About six people were believed to be "pulling the strings" in the scam, along with a number of people selling the "advertising" on commission.
Johnstone said police were closing in on the offenders and it was only a matter of time before they were netted.
"It's a strange investigation because they know we're coming," he said.
"In fact I got a ring from one of them reporting to be one of the valid publications and trying to find out what we were investigating. As soon as I challenged him he said `there's somebody at the door'."
He urged all businesses to be wary of scams and to not accept cold-call sales.
- NZPA
