Pyramid and lottery scams running riot

WELLINGTON - The Ministry of Consumer Affairs is warning people eager to earn money for Christmas not to be sucked in by any of the 90 scams circulating nationally.

Ministry spokeswoman Judy Cochrane said the number of scams was a real concern.

They included pyramid schemes, false prize offers, overseas lotteries and unregulated investment scams whose names included Fabulous Fortune, Instant Wealth, Park Avenue Prizes, Queen's Fortune and World Currency Transfer Reserve.

Ms Cochrane referred to a recent case in which a Dunedin couple lost their life savings after sending $79,000 to pay a Canadian lottery group taxes so they could access their prize. She said it was the worst case she had seen.

Other schemes asked people to send $39.95 to enter to win a six-figure sum.

If they did, they would be inundated with 17 similar scam offers a month, she said.

More than 70 per cent of the lottery scams had the same three Canadian box numbers.

Ms Cochrane said people should be wary of offers from Consumer Direct Marketing and from PO Box 58-008 Vancouver, BC, Canada; PO Box 94-310, Richmond, BC; and 7680 River Rd, Richmond, BC.

Others to watch for included the West Indies-based Given in Freedom Trust, a pyramid scheme that would require 804,406 people to sign up after your referral before you would receive the promised amount.

The ministry advised people not to be fooled by claims that a scheme was legal or approved by the ministry and the Commerce Commission.

- NZPA