Be aware of scams
For many people it’s an easy distinction to make, but scams continue to succeed because people continue to fall prey to them.
Phishing
Phishing is an attempt to trick you into revealing personal and sensitive information via email or an internet site.
Who hasn’t received an email from someone in Nigeria promising to reward you for helping them transfer a large amount of money out of the country? All you have to do is supply them with – you guessed it – your complete bank details. Or perhaps you’ve had a message advising you've won a prize in a lottery you never entered. As scams go, these are relatively easy to spot.
Others, however, are more sophisticated and difficult to detect. Some look legit at first glance. You might receive an email that starts like this:
See If You Qualify To Join An Elite Network Of Professionals
Dear [Name]
I am pleased to inform you that based on your professional background, you have been invited to apply for inclusion into the exclusive International Society of Executives & Professionals.
It has a professional logo, flattering text, a street address in New York, it’s signed by the Managing Director, and there’s a handy link to click through so you can complete your registration. To make you act quickly, it gives a deadline.
A Google search for this so-called Society reveals it to be a phishing scam.
Another is the Facebook post or quiz asking you for details such as your favourite colour or the name of your first pet. You know, the sort of questions you typically answer when you’ve forgotten a password. If you come across something like this, best leave well alone.
Ponzi Schemes to Cold Call Scams
From Ponzi schemes to cold call scams, it pays to be aware of the methods being used to part you with your hard-earned cash. On the FMA (Financial Markets Authority) website, they describe the various types of frauds and scams you need to be aware of. Take the time to read the list. It could save you money and heartache.
During fraud awareness week, the FMA shared a number of real-life investment scam stories. The individuals highlighted lost big amounts. Amounts they couldn’t afford to lose.
When investing your money, you need to practice caution. Being contacted by a stranger - especially one from overseas - should start warning bells ringing. It’s highly unlikely that you’d take health advice from someone cold calling from overseas. So why would you consider financial advice from an unknown person calling out of the blue?
Remember if it sounds too good to be true, it probably it is.
How we can help
If you have any investment queries you’d like to discuss with us, call on 0800-230-235 or send an email to admin@nzadvicegroup.co.nz to set up time to chat.
Websites to help you recognise and avoid potential scams