Seven things you need to know about online scams
Here are some of the top things you need to know about online scams and fraud.
Online scammers and fraudsters continue to target New Zealanders, leading to considerable financial losses and emotional distress for victims. The Ministry of Business, Innovation and Employment and the banking sector estimates nearly $200 million was lost to scams in the year to November 2023. Roger Beaumont, chief executive of the New Zealand Banking Association, says it’s vital for Kiwis to be vigilant about the dangers of scams. “The most important thing bank customers can do is avoid getting scammed in the first place,” Beaumont adds. “Be vigilant, be alert, be aware of the risk factors and always look out for red flags.”
Here are seven things every New Zealander should know about online fraud: 1. Scams are varied
Phishing and credential harvesting, unauthorised access to accounts are on the rise and scams involving romance led to more than $3.3 million in losses in 2021 to 2022.
2. Never give out your password or security questions
Banks will never ask for your password or the answer to your security question. If you receive a text message asking for that information, it is the work of a scammer.
3. Scams are on the rise
Reports of scams went up by 15% between 2021 and 2022, according to CERT NZ, as people spent more time online during the pandemic. The Global Anti Scam Alliance suggests the total could be as high as $2 billion in NZ.
4. Always use unique passwords
Modern phones and computers can store unique passwords on a digital keychain. Also, use two-factor authentication where possible.
5. Ignore unsolicited financial offers
If you receive an unsolicited phone call, text, or email offering a financial product that seems too good to be true, ignore it.
6. Report scammers
Contact your bank immediately. You can also report online scams to CERT NZ, Netsafe and the Police.
7. Everyone is at risk
While there’s a perception that scams mainly affect older people, every demographic is impacted by online fraud. “Every New Zealander is at risk, so be astute and be aware,” says the NZBA’s Beaumont. If you suspect you have been scammed, contact your bank immediately. For more tips on avoiding scams, visit www.nzba. org.nz/banking-information/fightingfinancial-crime/scams/