Fake investment scams increasing substantially

Te Whanganui a Tara - The Ministry of Business, Innovation and Employment’s (MBIE) Consumer Protection team, police, CERT NZ, the Financial Markets Authority and banks across Aotearoa are urging people to protect themselves from scammers.

The Banking Ombudsman Scheme has released alarming statistics showing a 63 percent increase in scam complaints reported to them in the latest financial year.

Combined data from New Zealand banks shows customers lost $183.5 million to scams from October 2021 to September 2022 – a 40 percent increase from the previous year. Today is the starts of NZ fraud awareness week.

The scheme says the true value of the impact of scams may be much higher, as many losses are not reported.

The statistics show Kiwis cannot be complacent. It is not only the volume of complaints about scams that is increasing, but also the sophistication and sums involved. New Zealanders need to remain vigilant.

The Financial Market Authority- Te Mana Tātai Hokohoko reported they are seeing a clear upwards trend in scam activity with 397 complaints and 95 scam warnings issued in the 12 months to Octobert 21, compared to 310 complaints and 70 warnings issued pre covid.

It’s important for people to stop and check before handing over any money. They should take time to think about whether the request for payment is genuine; Google the person or company; and talk to someone you trust to get their opinion.

Scammers are getting more sophisticated in their methods, CERT NZ director Rob Pope. There are some simple things that consumers can implement to be the hero of their own scam story.

Check your card security settings - Banks offer different types of security features which keep customers’ accounts and cards secure – e.g. setting daily maximum withdrawal limits; setting up alerts when a card is charged; and being able to lock / cancel a cards in seconds. 

Update your contact details at the bank - Banks have teams and systems in place looking for suspicious transactions and activity across customers’ accounts. Keeping contact details up to date means the bank can get in touch with a customer if they suspect suspicious activity. Remember, banks will never ask a customer to provide login details.

Stop and check - Take some time to think about whether the request for payment is genuine; Google the person or company; Talk to someone you trust and get their opinion

Talk to the bank about what protections are available