KEY POINTS:
New Zealanders are being warned against a new crop of telemarketing share scams.
United States-based Chase Capital Inc and Tradex Corporation, from China, are the most recent companies to telephone people offering share deals which are too good to be true, the Securities Commission said in a statement today.
Director of enforcement Normal Miller said the commission had been alerted to the new companies, using a scam which had been going on since 2005, by members of the public who had been telephoned.
"These are mainly people who have bought shares previously and are now being re-approached by, purportedly, a new broker with a new transaction -- and before that transaction can happen they have to pay more money," Mr Miller said.
Having lost money to the scammers in the past, several people were sceptical and reported the calls to the commission.
He said the "advance fee" was usually between US$4000 ($5831) and US$5000 ($7289).
"It's small enough to be tempting because the gain at the end is so big."
Mr Miller said the people behind the scam regularly changed their company names, selling tactics, and the countries they were operating from , in order to keep duping people.
He added that hanging up on the callers was the best thing to do, as talking to them only gave them more time to persuade people to hand over money.
Names of fraudsters who have telephoned New Zealanders are listed on the commission's website -- www.sec-com.govt.nz .
- NZPA
