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Scams and more scams

3 Oct 2016

Scams! They are happening all the time and when we least expect them.

Recently the Financial Markets Authority (FMA) released a real life story about a chartered accountant who we will call ‘John’. Despite being an experienced investor, John was scammed of US$39,750 through a share scam.

How was John targeted?

Initially John was contacted by an Asian research company doing a survey of New Zealand businesses. A week later, John received another call. This time from a trading company based in China asking if John wanted to purchase pre-IPO shares in Alibaba Group. After initially saying no, he was contacted again by the ‘Vice President’ of the fake trading company and convinced to set up a trading account. Shortly after this, the website closed and John realised he’d been scammed of US$39,750.

Were there any warning signs?

In hindsight, John had noted the final question asked by the scam research company was “Do you invest on your own behalf?” John now believes that by answering ‘yes’ to this question he became a target.

What’s the Tip?

Be aware that sharing personal information with a stranger can leave you vulnerable to fraud or scams. Cold calls of any kind should be treated with suspicion. For the entire story of John’s scam, and tips on how to protect yourself from scams, see the FMA’s website – scams – real life scam stories. So, if you get approached with an offer that sounds too good to be true – beware, it probably is!

Be careful out there!

Talk soon . . .

Money Penny