An Australian man has been arrested in Auckland and charged with allegedly trying to swindle New Zealand victims through a term deposit scam.
Police were alerted to the plot in early June after a bank reported what it believed to be a "fraudulent transaction".
A Gore resident contacted police after his bank informed him that $40,000 was being transferred from his savings into another New Zealand bank account.
Detective Senior Sergeant Craig Bolton said: "Following information received from this victim, police making enquiries into the scam identified a man believed to be involved."
Days later, an Australian citizen visiting Auckland Central was arrested and charged with four counts of engaging in money laundering.
The 30-year-old has been remanded in custody and was next due to reappear in court on August 6.
"These charges relate to two victims at opposite ends of the country," Bolton said.
He said one of the victims was the Gore man who made the report, while the other was based in Auckland. The Gore victim has had funds returned but the Aucklander wasn't so lucky.
Bolton said the arrest was a "great result" in the fight against scammers.
"Unfortunately, the reality of these types of damaging scams has seen the other Auckland-based victim of the same alleged offender $150,000 out of pocket”.
"It is absolutely devastating for those who are losing money in such huge quantities like this."
Scam scheme playbook
Police alleged the two victims were impacted by the same "term deposit" scam – which tricked victims into entering their details online while talking with a person posing as an "investment advisor".
The victims completed "professional-looking" documents online before transferring their money into an New Zealand bank account, which was then transferred offshore.
Bolton urged people to be cautious before placing money into a term deposit scheme.
"Never enter contact details into any online website that offers ‘term deposit’ rates. If you think you may have entered your contact details on a website offering fake term deposits, do not engage in conversations over the phone with a person purporting to be from a bank — disconnect the call and phone back to a number displayed on the bank’s website.
"You can always call your bank to seek reassurance and confirmation you are talking to a trusted and legitimate employee. Seek advice from a trusted friend or family member or someone who has knowledge of investments before sending any money anywhere."
Bolton said another way to confirm authenticity was to check the URL of any websites provided to confirm it was the valid website for the bank. "The Financial Markets Authority publishes the names of suspicious companies on their website,” he said.
“If you believe you are or have been the victim of fraud, contact Police at 105.police.govt.nz or call Police on 105 and report the matter.”
SHARE ME