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

Beware of phantom regulators

Telephone fraudsters who offer shares to New Zealanders often refer people to "a securities regulator" to verify that their operations are genuine. This is all part of the scam. For more information see the 28 July 2005 warning from the North American Securities Administrators Assocation.

Cold calling overseas brokers