$30 mill fleeced from Kiwis in share scams
A Securities Commission estimate of $30 million lost by New Zealanders to telephone callers offering bogus shares is just the tip of the iceberg, according to director of enforcement, Norman Miller.
Thursday, July 14th 2005, 6:34AM
The commission launched a campaign to warn people about overseas share scams a month ago. It has now found some gullible souls duped five or six years ago have been sucked in a second time trying to recoup their lost money.
Miller says the commission had had calls and e-mails from people all round the country "which indicate that our estimate of the losses was somewhat conservative".
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.
"Hang up is the best advice," Mr Miller said. He said the commission was now hearing from people who realised the latest con is all part of the same scam, he said.
The commission's website, www.sharescams.org.nz, has had almost 1900 visitors since it was set up a month ago. It is designed to help people "share their sad experiences about the folly of doing business with complete strangers", Miller said.
People in small businesses have been particular targets of the international fraudsters. The commission has taken out ads in newspapers and journals to warn people.
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