Smart scammers catch experienced investors

Last year she dealt with one case that involved five New Zealand victims who lost a combined US$381,000 (NZ$515,000).

The same month, another case involved five different overseas companies that were all connected and racked up US$350,000 in theft from Kiwi victims between them. ‘‘One of the [victim] CEOs I spoke to, he didn’t want his family to know, didn’t want his son to know and definitely didn’t want his staff to know.’’

She said anyone who was offered an investment opportunity should research it thoroughly. Investment providers should be registered in the country they claimed to be from.

‘‘You can go to that country’s regulatory body and check whether they are registered.’’

They should also take the documentation they were offered to an independent expert. Scammers had put significant resources into making their paperwork sophisticated and building up their associated websites.

It should also be a red flag if the company asked for money to be sent to a different account.

Some victims are at constant risk, writes

Fraud was a growing problem and early intervention was vital, Groot said.

‘‘You get people who are repeat victims. If you get in touch with a victim one month in, there’s a good chance of stopping them and they probably haven’t lost any money. But after six months it’s a lot harder because the losses are definitely up there. Any longer than 12 months and it’s hard work.’’

She dealt with one case where a man had been involved in a scam for five years before he got out.

If she did not stay in contact with him, there was a high chance the scammers would get in touch again and he would fall back in. ‘‘They want to recover their money so badly and the scammers come up with all sorts of ways.’’

Some would say they were acting for law firms investigating the scam. Others would say they were taking anti-money laundering action and people had been arrested. Eventually, victims would end up handing over money again. ‘‘It’s just the same scam with a different name.’’

Fraudsters moved faster than the regulators trying to keep up.