The New Zealand banking sector is facing a significant challenge with the rise of fraud and scam cases. The banking watchdog has reported an average of nearly 80 incidents per month over the past year.
Phishing and data-gathering scams were said to be one of the most frequently encountered types of online fraud, followed by online shopping scams.
In the 2023-2024 period, scam attempts accounted for 827 out of 3,704 complaints received by the banking ombudsman, representing a 27% increase compared to the previous year, 2022-2023.
Consumer NZ’s communications and campaigns manager, Jessica Walker, emphasised that banks must enhance their efforts to safeguard their customers.
“We think that banks should shoulder not all the responsibility, but a heck of a lot more of the responsibility than they are shouldering right now,” Walker said.
“Scam victims are suffering. The minute they realise they’ve been preyed upon, they reach out to their bank, and sometimes they’re left feeling stupid and greedy, and I don’t think that’s ever okay.”
As per Walker, both banks and online retailers, as well as telecommunications companies, contributed to the success of scammers, and a coordinated effort among multiple agencies was needed.
“People are buying things from websites that look exactly like the one they think they’re purchasing from, when, in fact, it is not.”
“And of course, you put your card details in because you think it’s genuine. I don’t think it’s fair to say ‘you gave your details away, so the liability is on you,” Walker added.
Banks cannot solely safeguard Kiwis from scams and have requested assistance from the government, including involvement from police and other agencies, said Roger Beaumont, chief executive of the New Zealand Banking Association.
“Banks are often at the end of a chain of events that leads to criminals stealing money from New Zealanders. Scams may start when people are deceived by fake websites, emails, texts, social media ads, and phone calls.”
“To truly strengthen New Zealand’s scam defences, everyone in the ecosystem needs to step up—including government, telcos, social media companies, and search engines. Banks can’t protect New Zealanders on their own,” Beaumont stated.
The New Zealand Banking Association has also requested government assistance to enhance the effectiveness of the Anti-Scam Centre and establish scam prevention expectations for other industries.
Moreover, the banking sector has committed to examining global reimbursement practices for victims of authorised scams and may revise the Code of Banking Practice accordingly.
This month, banks are anticipated to provide Commerce Minister Andrew Bayly with updates on a voluntary reimbursement initiative aimed at supporting victims of authorised payment scams.
