| Business News | Tuesday May 15 2012 14:45
New Zealand investors are in danger of being fleeced by a sophisticated new cold-calling share scam.
Fraudsters posing as a legitimate Japanese company, Sumitomo Mitsui Financial Corporation, are cold-calling investors and making lucrative share offers.
Ministry of Consumer Affairs team leader Jarrod Rendle says the so-called boiler room scammers, persuade their victims to sell under-performing shares in their portfolios.
"At some point the documentation suggests that a fee needs to be paid to the US Securities Exchange and that fee is the up-front money transfer fee, once that's paid you'll never hear from them again."
Mr Rendle says because the scammers are using publicly-available share registers, anyone who owns shares could be targeted.
Photo: NZ Herald