Telephone Share Scams

List of overseas firms that have called New Zealanders

New Zealanders have lost many millions of dollars to people from overseas who ring them up offering bogus share deals.

These callers are clever and persuasive. They make offers that are hard to resist. They target people throughout the country, particularly small business owners.

Many people have fallen victim to telephone offers of bogus share deals. In a good many cases no shares are bought at all. If shares are bought they turn out to be worthless and can't be sold.

Later people are often called again, this time by an apparently new "broker" who says he has a buyer for their shares. Again the message is very convincing, and many people send more money to pay for the new transaction. This money too is lost

What to do with unsolicited telephone calls offering shares

Do not send any money. It is always unwise to send money to someone overseas who you know only from an unsolicited telephone call. Money sent overseas to these firms will probably never be recovered

Hang up on the caller. Don't try to engage with the caller. They will use all their skill to persuade you to part with your money.

If you want to buy shares in overseas companies - contact a New Zealand broker who is responsible under New Zealand law

Overseas firms that have called New Zealanders

Since August 2000 we have published the names of firms who have targeted people in New Zealand. These callers do not hold a New Zealand broker's licence or futures dealer authorisation and do not comply with New Zealand law.

They have not provided evidence to the Commission that they are registered in their home jurisdiction to undertake this type of securities business.

This list is not exhaustive. If you are cold called from a firm that is not on the list it does not mean it is genuine. It is always unwise to send money overseas to someone who you know only from an unsolicited telephone call. These firms also refer to fake agencies with official-sounding names to prove that they are genuine.See the list of firms and official-sounding agencies.

The following is a list of other websites that have published a list of the names of cold callers:

• Australian Securities and Investments Commission - Cold Calling
• Australian Securities and Investments Commission - Follow Up Scams
• Australian Securities and Investments Commission - Fake International 'regulators'
• US Securities and Exchange Commission (SEC)
• Spanish Comisión Nacional del Mercado de Valores (CNMV)

See also www.sharescams.org.nz