New Zealanders need to be wary of investment scams promising high returns after millions of dollars have been stolen from people, the Serious Fraud Office says.
"Cases that the SFO has successfully prosecuted in recent years have involved frauds in which over $50 million has been scammed fromgullible people," said chief executive Grant Liddell.
"Victims of investment fraud come from all walks of life and many of these scams are sophisticated and designed to appeal to a certain market."
Mr Liddell pointed to recent cases prosecuted by the SFO including that of Phyllis Erena Mareroa and Tina Marie West, who were found guilty of defrauding investors of $3.9 million.
Most of the investors were friends and family of the women.
In another case, Hori Harvey cheated $1.7 million out of members of his local church in a Nigerian letter scam.
He relied on references to a church missionary who had been stationed in Nigeria as supporting the legitimacy of the investment.
Mr Liddell said virtually all the money invested in the schemes was "lost forever".
High-yield scams were usually promoted as an offshore investment scheme that would offer a higher return than could be obtained via a normal investment route. Returns were often advertised as upwards of 15 per cent per month.
