Warning signs

To avoid being ripped off, it helps to know what to look out for.

The golden rule - if it sounds too good to be true, it probably is!

Unless you can satisfy yourself that the offer is genuine - preferably by contacting the company making the offer directly - we recommend that you ignore it.

Other warning signs include:

• Failure to give adequate contact information - probably the single most important warning sign. Many companies hide behind a PO Box number, website or email address. If the company does not provide a physical address be extremely wary. The absence of a contact phone number and GST registration number (for NZ companies) are also signs that a company may not be legitimate.
  
  
• A fabulous prize is offered and all you have to do to claim it is provide your credit card details or send money overseas.
  
  
• A request to "send money now". Most genuine offers will allow a free trial period. A "money-back guarantee" is not good enough: if they want to steal your money, this guarantee will disappear with the company itself.
  
  
• A demand to "do it today!" Always take time to consider an investment or sales opportunity.
  
  
• A claim that it is "completely legal".
  
  
• A claim that the company complies with overseas legislation. Even if this is true it's not relevant if the scheme is illegal in New Zealand.
  
  
• A claim that the scheme is endorsed by Consumer NZ (or Consumers' Institute), Commerce Commission or the Ministry of Consumer Affairs. These organisations do not give approval to specific schemes.
  
  
• The return address is to a post office box in Richmond or Vancouver, Canada. For some reason an awful lot of scams - particularly prize or lottery type scams - are sent from Canada.