Praneeta Mahajan
Hamilton, April 20, 2024
New Zealanders are under siege by a relentless wave of scam activity, with nine out of ten people saying that they have been victims of fraudulent schemes.
According to the Ministry of Business, Innovation and Employment (MBIE), New Zealanders lost $198 million during the year to November 2023.
A BNZ report has highlighted the problem. The scams menacing Kiwis are diverse, each deploying unique tactics to ensnare unsuspecting victims.
While financial losses grab headlines, the broader societal toll looms large, encompassing erosion of personal security, feelings of shame, reputational damage, and a pervasive decline in online trust.
Phishing Scams: Beware of the Bait
Phishing, a perennial menace, persists as scammers employ various guises to coax individuals into divulging sensitive personal information. Utilising fake emails, text messages, or deceptive links, perpetrators prey on urgency and familiarity to extract login credentials, passwords, and credit card details.
BNZ Head of Financial Crime Ashley Kai-Fong said, “Vigilance is paramount in these scenarios. One should avoid clicking on links or attachments from unknown sources, verify the legitimacy of web addresses by hovering over links before clicking and refrain from disclosing personal information in response to unsolicited requests.”
Unlike random scams, investment fraud often targets individuals who have actively sought opportunities online, luring them with promises of lucrative returns. With offers spanning managed funds, cryptocurrencies, and real estate, scammers exploit urgency and exclusivity to dupe victims.
Mr Kai-Fond said, “Mitigate the risk by verifying the authenticity of investment firms through official channels, exercise scepticism toward unsolicited investment propositions, and consult the Financial Markets Authority’s warnings and alerts page for guidance.”
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Fraudsters skim $198 million off unsuspecting New Zealanders
Invoice Scams
Businesses frequently fall prey to invoice scams, where fraudulent invoices masquerade as legitimate payment requests. Exploiting trust and familiarity, scammers manipulate contact details to redirect payments to their accounts.
Mr Kai-Fond advises: “You can protect your business by validating changes in payment details directly with suppliers and ensuring that you cross-check contact information with trusted sources before making payments.”
Scammers posing as bank representatives employ urgency and panic to coerce individuals into divulging sensitive banking information or transferring funds. Victims are often convinced by urgent messages alleging unauthorised access to their accounts.
Mr Kai-Fond said,” You can shield yourself by verifying the legitimacy of communications through official channels and by refraining from sharing sensitive information over unsolicited channels.”
Online Shopping Scams
As online shopping gains traction in New Zealand, so do the perils of counterfeit websites and deceptive offers. Shoppers enticed by seemingly irresistible deals risk falling victim to scams where purchased items fail to materialise.
“I would highly recommend arming yourself with caution by patronising secure websites and reputable sellers. It is also essential to exercise discretion when encountering deals that seem too good to be true,” Mr Kai-Fond said.
Creating Awareness
The frontline defence against scams is awareness. By equipping oneself with knowledge and vigilance, individuals can shield themselves from the snares of fraudulent activity. Resources such as BNZ Scam Savvy and updates on prevalent scams provided by financial institutions offer invaluable tools in the fight against fraud.
Should you suspect you have been targeted or fallen victim to a scam, swift action is imperative. Contact your bank immediately to mitigate potential losses and safeguard your financial security.
Praneeta Mahajan is an Indian Newslink reporter based in Hamilton.
