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13 July 2005
$30 Million lost is just the tip of the iceberg
The Securities Commission's estimate of $30 million lost by New Zealanders to telephone callers offering bogus shares is indeed the tip of the iceberg, according to Director of Enforcement, Norman Miller.
The Commission launched a campaign to warn people about overseas share scams four weeks ago.
"Since then we have had calls and emails from people all round the country which indicate that our estimate of the losses was somewhat conservative," Norman Miller says.
Most of these people bought worthless shares from telephone boiler rooms five or six years ago. Now they all have similar stories of being contacted again to trade their worthless shares for more valuable stock. Having been lured into losing their money once, the fraudsters are tempting them with offers to recoup their losses.
"The bogus brokers are persistent and persuasive and we counsel people not to be taken in by what they have to say."
"Fortunately we are now hearing from people who realise this is all part of the same scam."
"Our new website www.sharescams.org.nz has already had almost 1900 visitors since it was set up one month ago. It has helped individuals to share their sad experiences about the folly of doing business with complete strangers," says Norman Miller.
The website was launched on 12 June 2005 followed by advertising in newspapers and journals. The Commission wants to reach people in small businesses who are particular targets of these international fraudsters.
Hang up is the best advice.
Contact: Poly Banerjee 04 4717666
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