Scams are on the rise and ruining lives, with over a million households in New Zealand targeted by scammers in the past year. But New Zealand is falling behind countries like Australia, the UK and Singapore when it comes to scam protections.
We've been calling for:
- Banks to refund scam victims for authorised and unauthorised scam payments, unless the victim has been grossly negligent.
- A national anti-scam framework requiring banks, telcos and digital platforms to take action to address scams and outlining their liability if they fail to meet their obligations.
- A centralised anti-scam centre where relevant organisations work together to keep us safe.
The government’s anti-scam alliance falls short of this. Consumer NZ has been invited to join the alliance so we’ll be observing progress towards these and other goals and advocating for better protections for New Zealanders.
The staggering cost of scams in NZ
Anyone can fall victim to a scam.
In New Zealand, roughly:
- $200 million was stolen from scam victims in 2024
- 1 million households were targeted by scammers in the past year
- 185,000 households were scammed out of money in the past year
- 58,000 New Zealanders were repeat victims of fraud and cybercrime.
The government needs to protect us
Currently, New Zealanders have insufficient protections if they fall victim to a scammer.
Anti-scam centres are being run by governments in Singapore and Australia, but the New Zealand government has left it to businesses to regulate themselves here. This isn’t an approach we support.
Last year, our government wrote to the banking, telecommunications industries and the digital platforms , asking them to provide customers better protection from scams and fraud.
Since then, the banks have taken some steps to improve customer protections, (see what is New Zealand doing?). However, this progress continues to be undermined by a lack of action from other scam-enabling sectors, which have failed to take significant action to prevent scams.
It’s clear that there is more that banks can do to protect consumers but they can’t compel telecommunications businesses or digital platforms to up their game and reimburse consumers.
That’s why we need a government-led response to stamp out scams.
What is New Zealand doing?
- Confirmation of payee: Confirmation of payee has now rolled out across New Zealand banks. It is an important step towards protecting New Zealanders from scammers, but it is not a silver bullet.
- Authorised push payment reimbursement: Banks have improved their policy on authorised push payment fraud under the Banking Code of Practice. However, the Code is voluntary and does not cover scams involving online marketplaces. One major bank reports that online marketplaces account for 40% of authorised push payment scam cases. We don’t think the banks have gone far enough to protect consumers and believe the government should lead the development of a mandatory reimbursement model.
- Unauthorised access reimbursements: New Zealand’s reimbursement policy for unauthorised access is good, though it is also part of the voluntary Code of Banking Practice rather than set out in the law. Its effectiveness depends on how correctly banks interpret it. Also, it is still not as strong as the UK’s policy.
- Real-time payments: New Zealand does not have a modern payments infrastructure, such as the one operating in the UK since 2008. Real-time payment networks have greater capacity to transfer information, which can drive a better, safer experience for consumers.
- SMS-blocking: New Zealand has no centralised effort to filter the content of text messages for scams. However, some telcos are currently rolling out anti-scam filters.
- Anti-scam alliance: A cross-sectoral initiative called the anti-scam slliance has been launched and includes participation by scam-enabling sectors, consumer representatives and the government. However, this falls short of the centralised, government-led anti-scam centre we believe is needed to stamp out scams.
What to do if you think you have been scammed
It's not easy to detect and prevent scams. Scammers are invisible, sophisticated and adapt to increase their chances of success.
A scam can take many forms: calls, text messages and ads leading you to fake sites that look like the real deal. From investment opportunities to online marketplace transactions and rogue charities – scammers are good at what they do.
If you think you have been scammed, act quickly and follow these four steps:
- Stop all contact with the scammer: Hang up the phone, stop replying to emails, letters or direct messages. If the scam originated online, block the scammer from contacting you.
- Contact the bank or platform you sent money through: The sooner your bank knows what has happened the faster the bank can act.
- Do not make any more payments: Many people are repeat victims of scam activity. Don't give money to anyone who contacts you and promises to help you get your money back.
- Report it: Reporting a scam or attempted scam helps to protect others. Many organisations have a role to play in protecting people from online scams and spam. Learn more in CERT NZ’s guide on where to report a scam.
Our work on scams so far
- New Zealand’s scam response: papering over the cracks
- Consumer NZ’s scambassador got scammed!
- Brush up on your digital hygiene
- Banks introduce new compensation measures for scam victims
- Don’t get (side) hustled: How to avoid job scams and spot a fake ad
- International consumer groups unite - tech companies need to provide greater scam protections
- The simple banking process that could stamp out scams
- When is your bank liable for scam losses?
- Investment scams: How two women lost over $100k on social media
- Banks need to do better in NZ's financial cybercrime avalanche
In the media
Beware romance scams on Valentines Day - Consumer NZ’s warning mentioned on TVNZ Breakfast
IRD is learning the hard way what scams have done to trust – Ruairi O’Shea, investigative writer, Consumer NZ, on The Spinoff
Fraud and scams top agenda for Consumer NZ’s meeting with Minister – Jon Duffy, chief executive, Consumer NZ, on RNZ
Are banks’ anti-scam tools enough? - Jessica Walker, acting head of research and advocacy, Consumer NZ, on RNZ
I got scammed! - How to spot the cons and protect your cash - Jessica Walker, acting head of research and advocacy, Consumer NZ, on Reagan White’s Where’s My Money? podcast
What can you do if you accidentally pay the wrong person? - Sahar Lone, communications and campaigns adviser, Consumer NZ, on RNZ
No, Harbor Lane is not closing down. The online businesses capitalising on Wellington’s economic gloom - Sahar Lone, communications and campaigns adviser, Consumer NZ, on RNZ
Worked over - Sahar Lone, communications and campaigns adviser, Consumer NZ, for Otago Daily Times