Scammers continue to exploit unsuspecting individuals, causing significant financial losses in New Zealand.
Recent data from NetSafe revealed New Zealanders lost over $35 million to scams during the 2021-2022 financial year, and that amount only represents the reported cases.
As numbers continue to rise, authorities and experts are urging Kiwis to remain vigilant to the evolving tactics employed by fraudsters.
Breakfast spoke to one New Zealander who fell victim to a sophisticated scam that almost resulted in substantial financial damage.
What happened?
The victim, who wished to remain anonymous, received an unexpected call while driving home. The person on the other end claimed to be from their bank, alerting them to suspicious activity on their credit card. But unknown to them, it was a scammer cleverly impersonating a bank representative.
The scammer informed the victim several large purchases had been attempted in Perth, Australia, and proceeded to verify their identity.
The scammer employed a series of deceptive tactics to gain the victim's trust. Instead of asking for a password, the scammer navigated the bank's forgotten password option for online banking, exploiting a vulnerability in the system.
Breakfast spoke to one Kiwi who but fell victim to a sophisticated scam that almost resulted in substantial financial damage. (Source: 1News)
The victim was asked to confirm personal information, such as their ex-partner's phone number, and the scammer subtly slipped in security questions during the conversation. Trusting the caller's apparent legitimacy, the victim inadvertently provided the information.
The scammer continued their manipulation. Recognising the bank would send a text message with a security code, the scammer claimed to be sending the code and requested the victim read it back for confirmation despite the text emphasising the importance of not sharing the code with anyone, even bank staff.
But believing their account had been compromised in Australia, the victim shared it and the scammer gained full access to all their accounts.
The aftermath and lessons learned
While the victim managed to recover all the funds that had been drained from their accounts, NetSafe said other Kiwis have not been as fortunate.
Chief online safety officer Sean Lyons said the recovery process can be complex and time-consuming, and some never see their funds returned.
Lyon said the incident is not isolated.
“You would find it quite hard to find anyone that hadn’t been touched by something like this, that hadn’t been the victim or attempted victim of a scam,” said Lyon.
He warned scams today are more elaborate and constantly changing, emphasising how crucial it is for everyone to exercise caution when dealing with financial matters online.
“They’ve evolved [and] they keep evolving as we get more familiar with what the scam looks like, it’s likely they change and move on,” said Lyon.
“What we used to recognise yesterday doesn’t count because tomorrow’s scam is going to look different.”
BNZ said it deals with scams of this nature on a daily basis.
Head of financial crime Ashley Kai Fong told Breakfast banks deal with scams of this nature on a daily basis.
"Scammers make it their day job to get your hard-earned money into their pockets," said Fong.
He said it highlights the need for increased awareness around security practices.
“The more we talk about this, the more we take away the shame, the more we get people educated and hopefully they won’t click on those links, or in a moment of vulnerability, security passwords that we’re actually telling you to keep safe.”
How can you protect yourself?
Experts recommend the following tips to protect yourself from falling victim to scams:
- Be cautious of unsolicited calls or emails asking for personal information or financial details.
- Never share sensitive information, such as passwords or security codes, over the phone unless you initiate the call and verify the authenticity of the recipient.
- Regularly review your bank statements and financial transactions for any suspicious activity.
- Educate yourself about common scam tactics and stay updated on the latest fraud trends.
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